My hot tip: TRACK YOUR NET WORTH!


#22

Staying anonymous allows me to share those numbers and details. I don’t think I would be comfortable putting my name and location out there with all my financial information. Having said that, I command the brave ones who do. :pray:

I started tracking mine about 4 months ago. It is awesome to see the progress and where the money is tied up at any given time. I also use Personal Capital to track everything in one place.


#23

I track mine. I probably track it too much. I think it is safe to say that I stalk it and it is seriously thinking of taking out a restraining order. I use Personal Capital and Mint and two spreadsheets (yes, I have a problem. I’m aware).


#24

I’ve tracked my net worth annually for years. It’s EXCITING to see decisions/actions taken thru the year resulting in TRUE WEALTH CREATION when you update your Net Worth.

Only 47 MORE DAYS until I get to do my 2016 update!! Yay!! (Yes, we’re FIRE bloggers in here, this stuff excites us!).

Am I the only one who gets excited when I update my net worth??


#25

Net worth is definitely my favorite number to track. I also get a kick out of tracking and trending some numbers I learned in a college finance course (or at least my version of them): Asset/Debt ratio, Quick number (liquid assets minus debt), and Quick ratio (liquid assets divided by debt).

My quick number/ratio are reaching critical milestones that I haven’t seen since I bought my current house. I’m just a few thousand dollars away from my quick number going positive and my quick ratio going above 1!


#26

Tiptoes past quietly because she doesn’t track her net worth


#27

I use personal Capitol but it tracks my home loan debt but not our equity. I like that it tracks the debt, but I don’t like feeling bloated about my numbers with equity. I can’t turn seem to delete the debt since it’s tied to a main checking account. How do I mitigate that one direction or another?


#28

Can add property in Personal Capital?

In Mint, I have my mortgage, and I have my house listed as property. You can either have it track the Zillow Zestimate or a value you type in.

The difference between the property value and the mortgage amount is the equity. Works out in the net worth.


#29

Ok it was hiding! Under add manual account after all the bank account options. Yikes, the number is so bloated. I’m probably going to die at this house. We love our little home.


#30

What do you mean bloated?


#31

More than it should be because it’s not liquid. I can just consider my investments as the number I need to go off of to retire. Not use the net worth amount as a benchmark for retirement capability.


#32

I meant feels bloated, the numbers seem pretty accurate with what houses have been going for in the neighborhood.


#33

What you count in your net worth is up to you. I’m not sure I’ve heard anybody say that it’s bad that their net worth is too high.

If it’s only what I can count on for retirement income, I wouldn’t count my home, car, or cash. I would only count my stocks, because that’s all that would keep producing money for me. But that’s very limiting.

I like to look at the total, so that every money move improves my net worth, including paying off my mortgage and increasing the equity in my house.


#34

Thanks for sharing, this is an excellent approach. I’m very new to looking at my whole picture although I have spent about ten years haphazardly working towards getting out of debt and increasing my savings. Your approach helps me see the value in looking at it from different angles.


#35

I absolutely track my net worth on a monthly basis and post it on my site. I only have two friends (and my wife) who actually know about the site so I don’t mind putting it out there.
Everybody tracks NW in a different way which makes comparing them quite difficult, I for instance do include the equity in my house. Many people do not for various reasons including lack of liquidity.


#36

In my mind, it’s liquid in the sense that if I really got down to my last dollar, I could quickly get a home equity line of credit until I sold it or got back on my feet.


#37

I too started off pretty well into the negatives. But tracking net worth has helped me out a lot. Now, about 3 & 3/4 years late, I’m closing in on the 6-figure club! :smiley: So yes, I’m all for tracking it.


#38

Yeah me too. The same could apply with stocks for instance, you can sell pretty much whenever but you have no guarantee of getting all your money back.


#39

it is a BLAST to track this! I’ve been doing it a few years every month! the cool part is you can see how much it grows month over month on avg (using excel)… So, saving + growth is increasing my net worth at rate of $8,000 - $9,000 per month! seeing that is very motivational…

the excel even shows a gradient bar that tells me what % I am towards my goal (I have 3 goals)… I’m 46% towards my low end goal, 36% towards my mid goal and 26% towards my stretch goal… once I’m at my low end goal that is my ‘zero’ mark or my freedom mark, I can choose to continue to work or not at the low end.

super fun stuff! Plus if you’re tracking enough, setting goals, tracking dividend amounts you can tell really get a solid feeling of progress… if the progress isn’t fast enough, you can visually see that you need to step on it some more and increase savings… or if you’re hitting your savings goals, you may want to back off and treat yourself to something…

someday we should get a few of us in some video chats together, share our spreadsheets!


#40

I’m a HUGE Fan of Net Worth tracking, I’ve been doing it for 25 YEARS!! Here’s a link to a Net Worth Template I created for my readers, I just uploaded this to the Forum’s Resource Page:


#41

I don’t have access to that topic. :frowning: