My Financial Goal for Growing My Net Worth
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Ever since the birth of the Carnival of Financial Goals, I have been leearning how to establish financial goals in several areas of my own PF management. The first goal I established last year was my emergency fund which I entered in the 1st carnival.
This goal is being currently tracked here because Moolanomy was asking me how it was coming along. This got me more interested in finding out what other goals I could achieve. That’s when I realized I also need to keep an eye on my net worth growth.
Not too long ago, I posted about the progress of my net worth during the 1st quarter of 2008. When I was writing that post, I realized a valuable lesson. It is important to keep tracking your financial data.
My goal for growing my net worth will be measured both on a month to month basis and a yearly basis. The reason why I am using both measurements is because there are some things beyond my control such as the stock market’s performance.
Monthly Net Worth Growth - 2.5%
Yearly Net Worth Growth - 30%
This is really simple to understand. By growing my net worth at 2.5 percent each month, I am able to grow my net worth by 30 percent each year.
As I said before, there are some things beyond my control and this was evident in my quarterly report where the fall of the stock market in January resulted in a decrease of my net worth.