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My birthday was on the 17th, which makes this the very first net worth report of my 30s.
Thirty. I’m 30 now. I still can’t believe it.
It’s been a little over a month since I’ve logged into Personal Capital, the free service I use to track our net worth. It’s really convenient because instead of making a spreadsheet and logging into all of our financial accounts every time I want to see what our current net worth is, I just log onto their website instead. It’s linked to almost all of our accounts – our checking and savings, retirement, and investment accounts – so it does all the hard work for me and shows me the updated amount upon logging in.
But none of this means anything if you’re not familiar with the term net worth.
According to Investopedia, “Net worth is the amount by which assets exceed liabilities. Net worth is a concept applicable to individuals and businesses as a key measure of how much an entity is worth. A consistent increase in net worth indicates good financial health; conversely, net worth may be depleted by annual operating losses or a substantial decrease in asset values relative to liabilities.”
What it comes down to is this – your net worth is the difference of your assets (what you own) minus your liabilities (what you owe).
Assets may include your home, car, investments, cash in the bank, etc. Liabilities are debts you owe, such as a mortgage, car loan, student loan, personal loan, etc.
My husband and I have now gone almost six full months without any liabilities since paying off our mortgage in January, so our net worth consists only of the assets below.
- Cash: $8,925
- Investments: $81,947
- House: $150,000
- Vehicles: $7,266
Net Worth: $248,138 (+$5,583 from last month)
We started tracking our net worth in July 2017 and have watched it increase $53,657 since that very first report. This increase is due to the debt we paid off, the money we’ve saved, the home improvements we’ve made recently and the slow increase in the value of our investments along the way.
If you haven’t been tracking your net worth, I recommend trying out Personal Capital. Most people don’t track it every month like I do, but it’s a good idea to log in at least every three to six months to make sure you’re staying on track for your financial goals.
Do you track your net worth? Let me know in the comments below or check in with me on Instagram!