I randomly found a report in YNAB that tells you your improvement in net worth over time (not just current net worth). Since I began my FIRE journey in October 2018, our net worth has increased by 8.4%! Fab! I am kind of surprised but also thrilled.
Although I’m not ready to share my actual net worth to the entire world, I can say that it includes all debts and assets, except for the stuff in our house and whatever Hubs has in his government pension. I even threw in 4k for my 2 old cars.
Recently I was listening to the ChooseFI podcast where Brad and Jonathan discuss how they calculate net worth. They discussed some different methods for doing this, like using Mint plus another tracking tool, and reconciling at the end of the year. Or just using an excel sheet with formulas where you can input your data manually. Additionally it was mentioned that some folks actually use different calculations such as not including your mortgage into the mix…I feel like this isn’t really a true picture so I included my mortgage. That said, I also included the full estimated value of my home as an asset.
Long story short, it’s great to check in on your net worth every now and then – it’s a helpful metric to measure your progress to improving your financial situation. +8.4% in 4 months is a big win in my book! Perhaps I’ll plan a special 10% increase in net worth party sometime soon…
How do you track your net worth? What tools do you use? Do you include all the “stuff” in your house as an asset? How about your home or cars, if you have any? Please comment with your thoughts!