I have seen this on a few other sites (the biggest one being Budgets Are Sexy) and started thinking that if I had to write down my net worth today, I would not be within 5%. I periodically check this figure, but with how much the market shifts and how high our savings rate is it should be tracked more often. I am still a firm believer that Net Worth is a Product of Meeting Goals, but I am going to indulge myself.
I left off a lot of our belongings off of this calculation to keep it easy, I don’t think my wife will want to sell her wedding ring anytime soon.
Good – 2 things stand out to me, our car is worth more than we owe (would have never guessed) and our Net Worth is higher than I thought by about 8K
Bad – Our company stock took a dive with the rest of the SAAS companies and this is the first time I have been down buying through the ESPP program. We have a car loan and student loans – more debt than I want, but at least the auto loan is .9%.
Month over Month Changes
Out of pure curiosity, I figured out how much my net worth should increase (not counting market fluctuations) every month. We are paying down our principal balance on debt by $1,638.38 this month. We contribute $2,445.41 every month based on our current Savings Rate calculation. Not counting market swings – our Net Worth should go up about $4,083.79 every month for a total of $49,005.48 a year. Not bad, but we still have some room for improvement.
I need to automate this – I briefly used Personal Capital when it first came out but had some issues connecting to my retirement accounts so I stopped. I will look back into Personal Capital and also take a look at Mint and report back.
Action Items: Calculate your net worth and start tracking! Looking at the yearly total motivates me to push a little harder. What is your current net worth and how much are you increasing it every month/year?