Tracking our Net Worth
Since early 2015 (March), we have been tracking our family net worth.
We hadn't always tracked it each month ... but back at the beginning of 2017, we decided it would help our goals to reach financial independence if we gave a monthly snapshot. Tracking it monthly helps give us a visual of our current finances.
Just like any other net worth report, we track both our assets and liabilities. We want our assets to grow and our liabilities to decrease ... which will "widen the gap" as some in the FI community like to call it.
The funny thing is that I get more excited most months watching our liabilities drop instead of our assets grow!
On the asset side, we are currently tracking 3 major categories which include - investments, cash, and the value of our home. Investments include all of our retirement accounts, 520 college savings plans for the kiddos, and our taxable brokerage accounts. Cash is pretty self explanatory ... but we honestly like to move it into our investment bucket as soon as we can. Lastly, we track the value of our home. This is more of a hypothetical number of what we possibly could get for it if we were to sell it today.
As far as liabilities, there are 3 main categories that we track - mortgage, credit card balance, and car loans. The mortgage is the largest liability ... but it is fun watching it drop every month. Then we have our credit cards which we pay off every single month. We are big into travel hacking ... so responsible credit card usage is key to our FI plan. Finally, we have our 2 car loans we are working to pay off. We are close to paying off our family vehicle loan and my car is a 0% interest loan.
Please feel free to check out our net worth reports you will find below. It is kinda fun to see how our net worth has grown over the months and years starting back in March 2015.