Net Worth Update November 2020

Here is my latest Net Worth update.

With 2020 almost done, it’s time to see if I can still reach my 2020 financial goals.

Unfortunately, my November savings rate was a bit lower than anticipated (around 38%) so it’s look like I will not accomplish my yearly savings objective. Maybe in December I will finally win the Euromillions 🙂

On the other hand, November was a good month for my equities. That contributed positively to my Net Worth.

Now let’s see the numbers, shall we?

Why Should You Track Your Net Worth?

Our Net Worth is a personal finance indicator that tells us how poor or rich we really are.

Many of the people that you know may not be as rich as you may think. Remember that looking rich does not necessarily mean being rich!

It all comes down to assets and liabilities.

Net Worth = Assets – Liabilities

Assets are what we own, such as a house or equities, and liabilities are what we owe, generally associated with debt.

Having a big and expensive house or driving an expensive car, just means we are most likely falling into the trap of lifestyle inflation, carrying with us a huge amount of debt.

So if we owe too much and if we are not able to pay for it anymore, we would be left with nothing.

Take that into consideration!

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What Are My Assets?

Nothing has changed dramatically with my assets. While I keep investing every single month and therefore more exposed to the financial markets, my assets are still the same.

Here’s my short list:

The biggest portion of my Net Worth is in Real Estate as expected! After all, you may have read that real estate prices in Luxembourg are one of the highest in Europe.

Evaluating real estate is not 100% accurate and the real price will always be different. Possible fees/taxes have not been taken into account.

Net Worth was mostly up due to the good performance of the equities market.

Total Assets = 789037€ (Up 1.15%)

The key aspect of tracking our Net Worth is to understand it’s direction and evolution. We all want a Net Worth that keeps growing with time.

The (Not So Pleasant) Liabilities

At the time of writing, I’m not debt-free but I would prefer to be 🙂

It’s no surprise that the main contributor to my total liabilities is my mortgage loan. While this might be seen as good debt (linked to assets that appreciate with time), it never feels right to owe so much money.

Hopefully, my liabilities will continue to decrease.

My plan is to reduce my debt in the next 3 years in about 75k€ starting in 2021. This is roughly 25k€ that I will need cut per year.

Total Liabilities: 472239€ (Down 0.39%)

No major change from the previous change, as only did the required monthly payments.

For next year, I wish and plan to clear some of my debt. Progress will come from consistent budgeting and new income sources.

Net Worth – The Big Number

So we come down to the big number. The current Net Worth stands at:

Net Worth = 316798€ (Up 7.65%)

To grow our Net Worth we should increase our assets and decrease our liabilities month after month.

From January onwards, I’m expecting to be able to increase my savings rate and invest more aggressively.

Hopefully, my post motivates you to start tracking your Net Worth. Thank you for reading and have a nice day!