I use ONS metrics for net worth related goals – 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.
Maintain a savings rate above 50%. Monthly savings rates don’t matter so long as the year to date average is at or above target.
Reduce the mortgage by £25,000 or more.
Use up all available pension allowance.
Use up all ISA allowance.
Pay no more than £50,000 income tax in 2022 / 2023 tax year.
- 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.