Oct-Dec 2020 Net Worth Update

A good quarterly personally, professionally and financially. I find as the end of the year comes into view I accelerate on things that have been outstanding for while with renewed vigour. I finished work on 18 December with a relatively tidy inbox, almost completed to do list and some good feedback from colleagues on my work last year.

I made some good progress until mid December on the R01 Financial services, regulation and ethics 20 CII credits towards a qualification in personal finance. The goal for taking the exam was end of November but I had mentally moved it to early January. Now having had 2 weeks off over Xmas it is on the move again to end of January.

I have found the study difficult, it is all new concepts and terminology to me. The knowledge is not ‘sticky’ I do not work in financial services so I have to learn by rote – I have limited personal experience on to which I can hang this new knowledge. I have to immerse myself in the content, study it more or less every day and maintain momentum to be successful – and Xmas has got in the way. Back on the wagon in January !

Finance wise what a great quarter with an average savings rate of 57.5%, total increase in net worth, and I can’t believe it and have to check it as I am typing it, of £10,185, that is 7.8%. These numbers have me doubting my spreadsheet, but it is true!.

With 18.7% YTD increase in net worth.

Last quarter I had committed to addressing my financial biases of hold onto assets for emotional rather than financial reasons. The three actions I took to address this bias are below and I am pleased that these have moving forward at a pace

• sell the Royal Mail Shares I have seen rise then plummet since 2013, and invest in tracker funds
  • I did this back in October and disappointedly I sold them at a loss and they are now back to price i bought them – this is an exercise in learning to letting go!
• transfer c£11k held in a cash ISA to a Stocks and Shares ISA, so I am fully invested
  • Done and enjoying my new simplified spreadsheet. Am also becoming a bit of a fully invested bore giving my family and friends the benefit of my insight – not sure am making much of a dent yet but am keeping going
• made the decision to sell our buy to let apartment. It will be difficult emotionally to let go. It has not been a terrible investment financially but financially and hassle wise it doesn’t quite stack up as nicely as invest and forget!
  • An offer was in within 2-3 weeks of it going on sale and looking at completion by the end of January 2021.

I did some great things this last quarter

Actions from last quarter

I did indeed pull my finger out and knuckled down to studying for my 20 CII credits Financial services, regulation and ethics module – but as above not quite in the position of finishing this calendar year with one module under my belt. And I still have not carved out some time to take full advantage of the help SA gave us at the August FIRE meet-up demystifying Match Betting. Lots to do in 2021.

I also got involved in ChooseFIx courtesy of an introduction by JK, which is all about building a community around FI and personal development, being 1% better each day and having accountability to support us meeting or FI and personal goals. We are just getting started with our 2021 goals, will let you know how we get on.

Actions for Q1 2021

So how was your last quarter of the year, what was your experience of the markets and did your net worth get a nice boost? Do you set goals, what is your process and are you being ambitious for 2021?