It’s time to take down the tree, vacuum up pine needles, and start making New Year’s resolutions. Here are mine.
I use ONS metrics for net worth related goals[1] – why reinvent the wheel? Calling home equity “property wealth” might be somewhat silly, but it seemed reasonable to keep the ONS terminology intact for consistency.
Savings rate
Maintain a savings rate above 60%. Monthly savings rates don’t matter so long as the year to date average is at or above target.
Property wealth
Overpay mortgage by £10k or more.
Pension wealth
Use up all available pension allowance.
Financial wealth
Top up Emergency Fund in line with any salary increase. Continue with regular savings into the S&S ISA.
Tax
Pay no more than £22k income tax in 2016 / 2017 tax year, and no more than £23k in 2017/2018 tax year.
Notes:
- Except for property, where I don’t take into account any revaluations. They are only really relevant for investment property, which I don’t own, and I also can’t be asked to track property index movements in between valuations. Hence here and everywhere else in this blog property wealth = purchase price – outstanding mortgage balance.
3652 Days 