Freedom Fund
The accounts below generate income for me, and my long term goal is for that income to increase to a level that covers my expenses on an annual basis. The amounts display the current value, not the cost.
- My expenses are currently approximately £10,000 per year (£833 per month).
- The average yield from my dividends is currently over 5%. To be conservative, I've based my Freedom Fund's yield on 4%.
In order to cover my expenses, I will need a portfolio worth £250,000. This will generate £10,000 a year of income. My goal is to achieve all of this by my 40th birthday which is 5/11/22.
The numbers in the tables below were accurate as of 31st March 2015.
| Freedom Fund | |
| Stocks & Shares NISA | £23,793.75 |
| Taxable Shares Account | £6,605.97 |
| Peer to Peer Lending | £109.90 |
| Freedom Fund | £30,509.62 |
| % of Goal | 12.20 |
My 2015 Freedom Fund Goal is £50,000 (20% of Target)
My Freedom Fund has taken a bit of a hit this month, as I sold some shares to fund my Kindle Publishing project.
My FF at the start of January was £25,030.75. After one quarter my FF has increased to £30,509.62 (21.8% increase). This represents an increase of £1,826* per month, which for me is huge. If I continue to increase my FF by this amount over the next 9 months I'll end up with £46,946 by the end of the year, which is short of my £50,000 goal. I have some work to do!
*It's worth pointing out, the majority of this is due to the increase in value of most of my stocks.
Net Worth
My Net Worth includes the Freedom Fund, Company Pension, Cash Savings, and my Home Equity*. It doesn't include valuables within the house, my car, joint accounts or any of Miss FFBF's possessions and home equity. My Net Worth is funded solely by me.
My only liability outside of my mortgage is the Student Loan.
*My Home equity is calculated by an estimate of our house price (reviewed monthly), minus the size of the mortgage (also reviewed monthly), and dividing my share of the home equity.
| Net Worth | |
| Freedom Fund | £30,509.62 |
| Company Pension | £7,921.10 |
| Cash Saving | £3,787.94 |
| Home Equity | £20,712.36 |
| Student Loan | -£5,391.07 |
| Net Worth | £57,539.95 |
My 2015 Net Worth Goal is £80,000
My Net Worth at the start of January 2015 was £52,315.10. After one quarter, my Net Worth has increased to £57,539.95 (9.9% increase).
In the minimal time I've been tracking my NW, my 4 month average increase is £1,606. If I carry on with this level of increase, I'll be on £71,993 at the end of December, which will put me short of my £80,000 target. I need to increase my average to £2,495 for 9 months to hit my desired total.
Freedom Fund / Net Worth Tracker