I love, love, love Quicken and have been using it for years -- almost two decades now. One thing I like so much about it is that it allows me to track my net worth and see my progress over time.
I thought I'd share my net worth gains by year (from Quicken) to demonstrated how the path to growing your net worth is not one straight climb. Sometimes it's up a bit and sometimes it's up big. And sometimes it's even down. Here are my results.
Over the past 17 years, my net worth has had a compound annual growth rate (CAGR) of 12.5%. But the gains versus the prior year have never been 12.5% exactly. Instead, they are as follows:
- 1997 - 15.6%
- 1998 - 22.8%
- 1999 - 18.6%
- 2000 - 14.2%
- 2001 - 9.7%
- 2002 - 4.8%
- 2003 - 28.3%
- 2004 - 17.5%
- 2005 - 7.2%
- 2006 - 19.9%
- 2007 - 13.3%
- 2008 - -15.7%
- 2009 - 28.8%
- 2010 - 20.9%
- 2011 - 7.0%
- 2012 - 15.9%
- 2013 - 19.5%
A few comments:
- I've only had a couple bad years -- both driven by bad years in the stock market. 2008 was my only down year and I think we all know what happened to cause that. 2002 wasn't that great either because the dot com bubble burst.
- In the early years my gains were mostly driven by my savings rate. We made much more than we spent and the difference went to growing our net worth (we invested the money for later growth.)
- The last few years have been driven by the stock market. I kept investing all through the 2008 crash and those funds are up dramatically since then. In fact my best year was 2009, the year after the crash. It's noteworthy that my second best year was 2003, just after the bubble burst.
- Four years had gains above 20%. I love those years. :)
- As for absolute dollars, 2013 was the best. Almost a 20% gain on a significant net worth is awesome. I hope I have a few more of those in my lifetime.
Ok, so not much to learn in this post, but kind of fun to look at the numbers.
How about you? Does anything stand out as you look at your net worth results?