Welcome everyone to a new year of the Moneystepper challenge. Do you remember back in the good old days when we used to speak about 2015 being our best financial year yet. Well, it was. Until 2016….!!
What’s been going on in January?
So, a New Year and a new financial challenge. After some great performances in 2015, we were all excited to get cracking in 2016.
I hope you all have set ambitious financial goals for this year. And, I hope also, that after a pretty dismal start to the year in the global financial markets, that you haven’t lost any of your confidence that 2016 is going to be a great year! :S
For me personally, January has been a very busy month. I’ve set up another new business, this one more aligned to my professional training as a chartered accountant. It’s very early days, but the market seems very welcoming to our ideas and so hopefully this will be a long and enjoyable journey.
Financially, I set my goals before the start of the year. A quick look back at 2015 showed that I achieved a savings rate of 35% and a net worth growth of 26.2%. My aim for 2016 is to beat those percentages and hence I’ve set my goals to be net worth improvement of 30% and a savings rate of 40%.
How did I get on to start with? Well, given the results in the global markets, and the fact that we completed and moved into a new house at the beginning of the month, not too bad at all…
January Net Worth Goal Pro-Rata (Total) = 2.5% (30%)
January Net Worth Result = 4.7%
January Savings Rate Goal = 40%
January Savings Rate Result = 28%
How did the markets do in Jan 2016?
Before I run through your results in Jan 2016, let’s have a quick look at the tough times that the global financial markets have been going through. The following at the results from January:
- FTSE 100 (UK): -2.5%
- FTSE 250 (UK): -5.4%
- S&P 500 (US): -5.1%
- Nasdaq (US): -7.9%
- Shanghai Comp (CHINA): -22.7%
- Nikkei 225 (JAPAN): -8.0%
- TSX (CANADA): -1.4%
- IBOVESPA (SPAIN): -6.8%
- BSE SENSEX (INDIA): -4.8%
So, as investors in UK & US markets, we were really feeling the squeeze, but investors in China and Asia were going through even tougher times in the month. This is the kind of month where you have to shut your eyes, forget about the sea of red and be thankful that you are still investing your money at a cheaper base.
However, I know that doing so doesn’t feel great when you’ve got to report your monthly results here! 🙁
Moneystepper Savings Challenge – January 2016 Summary
In January, the average (mean) for everyone who submitted their results was:
Net Worth Improvement: +1.5% (vs avg. Goal: 2.6%)
Savings Rate: 51.7% (vs avg. Goal: 51.7%)
Nice work gang. The big change that I’ve seen in this year is that people seem to have got a better grip on their goals and that they are more reflective of what is both ambitious, but achievable. This is particularly evident in the savings rate goals and achievement figures.
From people’s individual submissions, it was fairly clear that the aforementioned market slump was the biggest factor affecting the net worth progress.
Right, onto the detail…
Moneystepper Savings Challenge – January 2016 Results Detail
Below you will find the results for everyone, ordered by their net worth achievement against their net worth goal:
Did Not Submit – I don’t think that I received the submissions from the following. Let me know if I was mistaken:
- Nigel W
- Tom B
- Dan T
- Michael S
- Shaun B
- Ben S
Please get in touch with your results guys, and my apologies if I’ve missed your submissions in some way.
Apologies for the brief summary of everyone’s results this month – I’ve struggled to find the time to delve into them in detail. I’ll make it up to you in Feb’s results! 🙂