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I am so excited to share this net worth report with you! I’ve had my eye on a certain milestone since I first began tracking our net worth in July 2017, and I was so excited when I logged onto Personal Capital, the free service I use to track our net worth, and saw that we have finally reached it.
But before we get there, I want to give a quick definition of net worth for anyone unfamiliar with the term.
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.”
Basically, all 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 paid off our mortgage in January (read about our debt free moment here), so we no longer have any liabilities. Therefore, our net worth consists only of the assets listed below:
- Cash: $12,941
- Investments: $81,938
- House: $150,000
- Vehicles: $7,221
Net Worth: $252,100 (+$3,962 from last month)
This fact does not send fireworks shooting into the sky or directly change anything about our lives, but it is really cool to see that we’ve reached that amount.
It’s not even so much about the money as it is about my change of mindset. Until a few years ago, “millionaire” was a term that I just thought was for other people – not for me. I now know that we can and will reach a net worth of at least a million dollars, so seeing that we are a quarter of the way there is exciting.
Since my first report in July of last year, we have experienced an increase of $57,619 in our net worth. This 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.
In a couple weeks, we will begin a new savings goal, so our net worth should rise significantly over the next couple of years. Keep an eye out for an announcement of that new goal soon!
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!