The Impact of Tiny House Living on My Net Worth Growth Over 5 Years
Each year New Years’ day while I do the recap and review of the previous year I also track and write down my net worth number.
I started 5 years ago and love the progress so far!
Why do I do this very FIRE-style thing activity each year?
It’s bloody simple and easy thing to do with a big impact.
And the only way to see whether you’re working further towards your FIRE number or moving further away from it.
What is the net worth number?
Quite simply the total value of assets minus all debt.
Networth = Assets – Debt.
The fancy numbers :
1.1.2018 251.000 dkk 33.700€
1.1.2019 275.672 dkk 37.000€ 5 months, 4 days long honey moon! (50.000dkk 6700€ my half for whole trip)
1.1.2020 296.000 dkk 39.700€ Built the Tiny house; my half 75.000 dkk (total : 150.000 dkk 20.000€).
1.1.2021 492.376 dkk 66.100€
1.1.2022 754.975 dkk 101.300€
1.1.2023 736.808 dkk 98.876€ Bought a house with land to build and grow a self-sufficient garden.
Love to see this graph showing quite a heavy growth in the previous years meaning tiny house living in itself is a great factor when wanting to work towards financial independence.
Lower monthly cost = larger amount able to be invested per month.
2022 has resulted in a little drop this year which isn’t the most optimal way of working towards FIRE, as you probably can imagine!
But this drop has been a big step for us working towards our dream location with a self-sufficient garden plus many more projects.
The drop is due to two factors: The overall market dropping as a whole and that we’ve invested in a house that needed to be fixed up (by ourselves) to become ready for paying holiday guests which will hopefully create a little income.
We’ve already had five sets of guests in the autumn with great success.
Which bodes well for 2023!
Quite a big drop in the portfolio which most people have had this year.
Still very calm as this will increase again over the next few years.
I’ll continue to invest monthly to get larger returns in 2 to 5 years.
Let’s hope 2023 gives a positive Net Worth growth.
Fingers crossed it moves in that direction!
I’ll be doing everything I can to make this possible.
Do you track your net worth?