Net Worth Update: February 2008

by Kevin on February 7, 2008

I decided in 2008 I would track our net worth where:

Net Worth = All Assets – All Liabilities

Assets being cash, investments, retirement accounts, cars, and the house. Things that we could sell if we absolutely had to. This does not include our belongings (computers, clothes, sofa, and the like) simply because calculating the market value of those items would be too much work to track. I used the Kelly Blue Book value for the vehicles.

Liabilities being anything that we owe money on/to. Example: credit cards (we pay them off monthly, but since this is a snapshot we account for the cash for those cards as a positive, so we must account for the liability as well), the mortgages, and my student loans in deferral.

Our January net worth was $xx,xxx (I don’t think I am going to share this number publicly) with one caveat. I did not calculate our credit card liability at the time so it may have been $1,000-3,000 lower depending when in the month I ran the calculation.

I’m happy to report that even with the stock market going for a ride (especially today – down 3%), our net worth increased 1.13%. I’ll take any positive we can get.

Do you track your net worth?

{ 3 comments }

Sick of Debt February 7, 2008 at 2:11 pm

Yes, I track net worth because I found it gives substance besides seeing $X in my bank account. It has helped me see that I am reaching my goals of getting out of debt.

Eric February 7, 2008 at 5:51 pm

I definitely keep track of it. I’m completely debt free, save for my residence, and it feels good to keep reminding myself of that. The more I see it, the more I want to protect it.

Mark @ TheLocoMono June 7, 2008 at 1:31 pm

Aye, I do track my net worth. I started doing this about a year ago after I had at least 8 months of data to work with. Since then, my net worth have been growing at nearly a 30% a year clip which really encourages me to manage my finances religiously.

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