Net Worth New Year's Resolutions

[lostamonkey]

I am a big fan of New Year's Resolutions. In 2014 I had three resolutions and I succeeded on two of them and failed one.

I have a net worth new years resolution for 2015. I am wondering if these types of resolutions are worth it. My net worth is highly dependant on the market and my side hustle income. Both of these are highly variable. I could have a great year saving wise but have the market tank (which could happen) and actually have a lower net worth at the end of 2015, or save nothing and still achieve my net worth goal due to a great market.

1. Do you think Net Worth Resolutions are worth it?

2. Do you have a Net Worth Resolution for 2015?

[kudy]

I think it could be discouraging to focus entirely on net worth in the event of a down market - why not change your thinking slightly and create a goal based on the amount of stock purchased, or the amount of money invested, rather than the value at the end of the year?

For example, you could have a goal to fully fund a 401k (18,000), an IRA (5,500), and add a chunk of money to a taxable investment account (10,000) - this goal isn't affected by as many outside factors. As long as fund purchases/allocations in these accounts follow your investment policy, then you can be happy about reaching your goal and following your plan, no matter the actual value of the funds.

If side hustle income is variable, maybe you could have a goal to smooth out the variations as much as possible? Maybe do some outreach, or advertising.. it really depends on what type of work it is - maybe ask for referrals? If your goal is to increase side hustle business, then the end result should be a higher net worth!

[schimt]

Implementing "S.M.A.R.T." goals are much more valuable then generic resolutions, regardless of it being financial, health, or any other category.

Net Worth increase.

Specific Goal - You can be specific about how much you want your net worth value to be
Measurable - Net worth is very easily measured
Achievable - defined as being completely with in your control, this is where your goal fails this methodology for goal setting
Relevant - Yes net worth is relevant to all of our quest to financial independence
Time bound - Your goal is for one year

So just as kudy said, you should focus on something that is achievable, regardless of outside factors like the market. The example kudy provides is a perfect example. Try to set "SMART" goals when possible. You can google all types of info on setting your goals up in this fashion.

[Jesus Christ]

today I wrote two lists:

"Stuff I can sell" and "Things to save money"

It will be going on the fridge once my holiday house guests leave.

[RapmasterD]

I visualize a number and more often than not we hit it.

[arebelspy]

I visualize a number and more often than not we hit it.

Next time multiply your number by, say, 100 before visualizing it.

[minority_finance_mo]

I visualize a number and more often than not we hit it.

Next time multiply your number by, say, 100 before visualizing it.

lmao

[forummm]

I visualize a number and more often than not we hit it.

Visualize $1 trillion for me. I'll put every penny in a huge charitable foundation.

The first project would be clean drinking water for 95% of humans.

[tracylayton]

I think this may be the year I cross the million dollar mark, if all goes reasonably well. Because I'm so close, I may just make it a resolution. The big unknown is how much I'll make in real estate commissions and what the price of natural gas will be (royalty checks on gas wells).

[Calvin]

I don't have a net worth goal because of the market volatility. Instead, I set a goal on the amount of excess income I save/invest. My goal for this year is to put an additional $75k in my investment accounts and savings.

[TerriM]

My goal is to use my time more wisely.  Since time=money, this would mean more savings.

Kick me off the forums now :)

[Elderwood17]

I do like like resolutions and like to put them down in writing.  I focus on what I want to save and don't try to guess the markets with net worth goals short term.

[RapmasterD]

I visualize a number and more often than not we hit it.

Next time multiply your number by, say, 100 before visualizing it.

lmao

I knew that if I mentioned the visualization thing there'd be a snarky backlash. I'd have been betterment to keep my mouth shut.

[arebelspy]

I knew that if I mentioned the visualization thing there'd be a snarky backlash. I'd have been betterment to keep my mouth shut.

There was no snark.  You bring your own interpretation to it.

[ClovisKid]

I also set an annual savings goal, but I also have a multi-year net worth target that may or may not be hit (or exceeded) due to market volatility.  The net worth target keeps me motivated to meet the savings goal each year.

[Fruchtwein]

1. Do you think Net Worth Resolutions are worth it?

2. Do you have a Net Worth Resolution for 2015?

1.) Yes, because you need to set up goals. My shortest goals are yearly goals and I want to track them each quarter. But I'm also thinking in longer terms: 5, 10 and 20 year goals. Without goals it is hard to evaluate and there would be nothing you have to fight to reach. Net Worth Resolution is a simple one-year-goal.

2.) One of my goals for 2015 is to save 61k EUR and invest it - so, yes, I have a net worth goal. But I don't use the market value for the evaluation, as it can fluctuate in both directions. I use the "buying price" of my assets.

[DeltaBond]

I have a net worth goal - or rather a simple savings account goal of $12K - I tend to save a thousand dollars a month.  I'm putting off home improvements another year in order to do this (I bought my house Jan 2014).

My other goal is to be in much better shape than I am now - as it saves money.  I was in a car wreck in Feb 2014, and the insurance has run out on that one, so if I want to spend less on the chiropractor, I really need to get back in shape and out of pain.  Good health equals saved money :D

[RapmasterD]

I knew that if I mentioned the visualization thing there'd be a snarky backlash. I'd have been betterment to keep my mouth shut.

There was no snark.  You bring your own interpretation to it.

You are a very good moderator.

You are also very snarky.

If you don't agree, perhaps you are in denial.

Would you mind if I called you snarkelespy? Oops! That was snarky.

P.S. I'm still visualizing.....ommmmm........

[arebelspy]

Call me whatever you want, just don't call me late for dinner.

Now treat it as a serious suggestion, and just try it.

[RapmasterD]

Call me whatever you want, just don't call me late for dinner.

Now treat it as a serious suggestion, and just try it.

Thank you. But my number is already extremely high. Multiplying by 100 would be the height of absurdity.

[arebelspy]

Thank you. But my number is already extremely high. Multiplying by 100 would be the height of absurdity.

Then multiply by 1000.

[RapmasterD]

And on a similar tangent, perusing this is WAY better than your garden variety copy of PEOPLE Magazine.

LINK: http://www.forbes.com/forbes-400/list/#tab:overall