Imagine leaving London to sail to New York. You’re at the initial stage of leaving the dock; you look at your compass; point with your finger in one direction and call to lower your sails. You then pack away your compass and hope you reach New York. Will you end up in the docks of New York? I would most likely say no.
Just as a ship needs to ensure it is still on track, you need to ensure that your finances are also tracking along towards your goals. A ship simply uses a chart or map, to ensure they are in fact on course to reach its destination. Regularly the navigator will determine their location and plot it on their chart.
The best way to also track your progress is also on a chart. I chart my progression monthly to ensure I am going to reach my destination of Financial Independence. If I don’t I could be travelling in the wrong direction and never reach my destination. Worse still I could hit a reef and sink.
My Net Worth Chart
I have been net worth tracking monthly since the 1st of July 2017. 2017 was the year when I really decided that I need to focus on my finances and reach my goal of being a millionaire by 30 (See Charting My Future). I started with $225,151 net worth, which is not bad for blind sailing, but my only real assets was my retirement account.
At the time I had no debt, no credit card and no car loan. Don’t get me wrong, I was very lucky to be in this starting situation, and it was due to hard frugality and savings.
My plan is to give you a monthly update on my net worth, as it also keeps me on track with my goals. But I will fill you in on the major milestones since 2017, and how I was able to reach the ever-reaching goal of being a millionaire.
My net worth tracking chart, is in the same spreadsheet as my Budget (See The Ship’s Ledger). It is very rudimentary and with a ton of charts. Updating it often gives me the trend of my spending or increase of wealth. As sometimes you don’t get the whole picture, you can look at your bank account and think you are going backwards. But looking at the holistic picture indicates you are moving forward.
And as you will see, I am nowhere near FI, I am assets rich, cash poor as they say. However, this is part of my long-term goal of leverage, savings, and asset accumulation.
Below are my monthly updates and recaps.