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is there a certain percentage of income you should be increasing your net worth by on annual basis? just looking for a guide.
right now i have a savings account, a checking account, my 401(k) (regular & roth) through work, and a fidelity account. i don't own a home or have any other major assets. as of right now my net worth has increased 38% since January 1st, 2016, but i took my total savings YTD divided by my annual salary. is that the right way to do it? is that a good percentage?
just trying to set some goals. is this even a good measurement to use? thanks!!
is there a certain percentage of income you should be increasing your net worth by on annual basis? just looking for a guide.
right now i have a savings account, a checking account, my 401(k) (regular & roth) through work, and a fidelity account. i don't own a home or have any other major assets. as of right now my net worth has increased 38% since January 1st, 2016, but i took my total savings YTD divided by my annual salary. is that the right way to do it? is that a good percentage?
just trying to set some goals. is this even a good measurement to use? thanks!!
Seems like a reasonable way to a calculate savings rate. YTD Savings at a % of total Gross or Net.
so how do you decide if you had a successful year of saving?
op is not saying savings rate , they are saying increases in net worth . that is investment dependent as well as saving dependent .
it depends if you are in a variable investment or fixed income . my benchmark for my investments yearly are if i beat just buying a cd . but because stocks can be down one year and up 30% the next looking yearly makes it haard to put a number on it .
markets do not grow any particular amount yearly , they just do longer term averages
I'd focus on your savings rate like others have mentioned. For example, I'm trying to get my savings to be as much as my expenses per year; if I spend $60k I want to save $60k. % increases in networth can depend on a number of factors. Did your assets appreciate or depreciate? Als, as your networth starts to climb up getting high percentages of growth gets harder and harder.
Also- rent or own primary residence and if you own, where are you in any mortgages? If you've got 15 years or less on any primary mortgage, the substantial principle pay down is going to increase net work in a flat or better housing market without any real effort on your part.
I don't know if I understand the question properly but I'm hoping to double my networth every year. Failure to do that, I wouldn't mind settle for 5-10% increase every year.
In the beginning I'd think net worth would increase dramatically as you are saving and it is a greater % of your net worth. As your pile of assets increases the % change will likely go down, although you could have lump sum increases due to major financial events.
I don't know if I understand the question properly but I'm hoping to double my networth every year. Failure to do that, I wouldn't mind settle for 5-10% increase every year.
Seriously? Maybe for the first few years but starting out at
Year 1 $10k
Year 2 $20k
Year 3 $40k
Year 4 $80k
Year 5 $160k
Year 6 $320k
Year 7 $640k
Year 8 $1,280k - more than a million!!!!!!!!!!!!!!
...but you'll settle for 5-10%....?
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