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Net Worth: October 2021

Well here we are—another update on my current net worth.

Here are the figures.

H2 FY2021/22 has gotten off to a strong start with October following on from the successes at the close of H1 (end of September 2021).

We have had a solid few months of sustained growth in assets, particularly steady since July 2021. October saw me grow my assets by 8%, decrease my debt by 10%, leading to a 20% overall growth in net worth.

For November I’d like to grow just by 1% more. This will be challenging of course as it’s a much bigger number to grow by but let’s see how it goes.

Profits will be challenged in November given the slim budget I have to work with—I am desperately hoping (and need to be planning) to keep expenses constrained.

As I was updating the chart below, I was reflecting on where I was just six months ago.

There have been two inflection points this year.

The first was when my assets surpassed my debt. This was at some point during Q4 2020/21.

If you had seen this chart at that time (between January and April 2021), what you would have seen is my net worth in the negative, with more debt than assets to my name. The first inflection point changed that.

This was a result of simultaneously earning more money from my work and focusing on reducing my expenses. That double-edged approach led to the second inflection point in August 2021 (about 6-8 months later) when this time my net worth surpassed my debt.

The third inflection point will be when my net worth catches up to my assets once I’ve cleared all my debt. I’m hoping and planning on that happening in the next 4-5 months.

This is a powerful chart that illustrates the strides you can make by focusing on (1) earning more money, (2) reducing expenses and (3) aggressively paying of debt. By the end of FY2021/22, that triple-pronged approach would have taken me from a negative net worth to about £20K in the positive — all within about 15 months.

I am surely grateful because debt stinks. It’s a heavy burden that constricts you in everything you want to do. I have definitely learned my lesson and grateful for the opportunity to earn more so I can get rid of it. But this is just the beginning. I want this to be the foundation of a great financial future. £20K is great, but I look forward to writing about £200K – and maybe even £2million!

We certainly make no small plans here.

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