Schools have gone back here in Denmark, and even though it’s August it’s clearly heading towards autumn. Maybe September will be beautiful, but there is a chill in the air.
We have settled into the new house, and done the first week of school with the new route and routine, and I am getting to understand all the costs associated with this home (clue – it’s more of a mystery than it should be). I’m getting ready to reset my financial goals and as part of this I wanted to review my net worth. Buying a home definitely made my savings take a hit – some of it went to equity but some also to lawyers, removal men, registration fees and so on.
Whilst I usually do this in either April with the end of the tax year, of December, right now I have that new-school-year feeling so thought I would have a look!
So here are the totals and the comparisons, showing that I have a current net worth of £628,532.
|Value July 2021||Value Dec 2020||Value April 2020||Value April 2019|
|Pensions||£ 193,164||£ 163,540||£ 134,240||£ 105,675|
|Savings||£ 25,368||£ 83,287||£ 68,500||£ 26,000|
|House Equity||£ 400,000||£ 343,000||£ 323,223||£ 304,000|
|Emergency Fund||£ 10,000||£ 10,000||£ 15,000||£ 3,500|
|£ 628,532||£ 599,827||£ 540,963||£ 439,175|
Three of my four pensions are ‘defined benefit’ meaning that increases here come from money paid in to my current work pension (also defined benefit); and money paid in plus changes to investments on my SIPP. The projections for all my existing pensions, those from previous employmet plus the SIPP, comes to an income of around £11,881 per year. In my current job, if I leave before 2024 then I just get my contributions refunded so I won’t include a projection from that until I’ve worked out my time.
Over this time, my house in the UK hasn’t increased in value, and I slowed down additional mortgage payments to prepare for the new house purchase. I also put a solid deposit down on the Danish house, meaning my overall equity in property has increased to £400,000. This feels like a lot in terms of the balance, but as one of the houses is rented out and brings in a net income of around £10,000 a year, I am ok with it for now. The main part of that deposit was pulled out of savings, which is why that went down.
Either way this shows an increase in net worth of £28,705 over seven months – an average of £4,100 per month. I am pretty pleased with that, especially with the significant amount of money spent on the house purchase, and it also shows me the need to bolster my savings and keep up the ‘set it and forget it’ aspects of my pensions. It also shows an increase of more than £200,000 in a little more than two years, which I am really proud of!
How is your net worth looking these days? I’d love to hear from you!