Does the Rate of Net Worth Appreciation Change Over Time?

Does the Rate of Net Worth Appreciation Change Over Time?

Bring confidence to your wealth building with simplified strategies from The Money Guy. Learn how to apply financial tactics that go beyond common sense and help you reach your money goals faster. Make your assets do the heavy lifting so you can quit worrying and start living a more fulfilled life.

[chrishayes]

Doing the annual net worth is such a great thing, and one of the most fun parts (in up years at least) is doing that year over year growth comparison. Going a step further its even more satisfying when you back out the dollars contributed from your income to see what your actual passive returns added up to for the year. I remember the first time I showed my partner that I made more in wealth by "doing nothing" with investment market returns than she or I made in earned income for the year and that motivated her to ramp up her savings. It's a feeling that really seems to hit home when you do the tracking/calculations.

[dancooper]

I think they should have hit on not reallocationing your portfolio based on emotions. Either leave it and let it bounce back or take advice from a professional on where to reallocate if/when the market does take a dip. Other than that, I love The Money Guys.

[xiphoid]

Yes, the % increase is rapid in the beginning due to what you are saving is driving the networth, which is rewarding. It is just as rewarding when your investments is so big that it makes more than you save/make a year. But as The Money Guys said, the first bad year (such as 2022) with that huge networth will make you realize the importance of capital preservation. This is why wealthier people's investment is often more conservative.

[SabineCedor]

Great content, added value to my life. Can't wait to see what my net worth will be after investing in turnkey multifamily apartments

[Pjeski]

It was really cool to realize that investments made more than I did by working in one year.

[Ninjax]

Is Net Worth a good measurement of financial health?