Monday, January 15

2006 Net worth growth

In my first post, I listed a goal to grow my net worth to $1 million and today I would like to examine that in more detail.

I am in my early 30's right now and I have a current net worth of about $540,000. One year ago I valued myself at $340,000 and a year before that it might have been $240,000 (I'm not quite positive on that). The rapid growth over the past two years can be attributed to mostly some amazing real estate gains and secondly a couple of good years for business income.

I would break down the $200,000 increase for 2006 as follows:
$70,000 - real estate growth
$26,000 - investment growth in corporate accounts
$4,600 - investment growth in registered accounts
$98,000 - increase in corporate bank accounts and receivables

This doesn't add up because I'm using round numbers of course....

I suppose that looking at this it seems that the business income gain was larger than the real estate gain, but that is misleading because I made a larger real estate gain than this shows but I was able to spend some of it on moving and renos for the new house tax free from the sale of the old house, so the entire gain did not make it to my bottom line.

Also, I knew that 2006 was going to be a good year for me, but I'm a bit shocked that it turned out that well for business income. Hmmm... the things you find when looking at the numbers.

Anyway, the message here is that I had an amazing year, of the sort that I don't expect to have again for a long time, if ever frankly. 60% net worth growth isn't something that happens very often, and the larger the numbers, the harder to make them do magic.

So that's where I am now, and it's good. I think that I will sign off here and come back to my first million again in a later post.