Tag Archives: net worth

Do You Track Your Net Worth?

FMF asks the question, and asks why you do/don’t and how often.  My opinion is that you can’t accurately track your financial progress as a whole without a grasp of how to measure your net worth.

Like him, I used to look at mine pretty regularly, but now I check it once, maybe twice a month.  With the market of late, I’ve become almost afraid to.  I use Yodlee to keep everything in one place, and here’s what I look for as a barometer:

  • Is a large one-day or other short-term market swing significantly affecting my net worth?  If so, I try to factor that into my observations.  Just a simple check of my portfolio balances.
  • Are my floor and ceiling both rising? —  There are always fluctuations during the pay cycles where your bank accounts crest and trough.  I feel good if both the low-end and high-end of my net worth’s range are inching higher every month.  Hell, just paying the mortgage should give you a slight upward tickas you build equity.
  • Any recent big expenses?:  I just paid the car insurance, which always suppresses you a bit in the short term.  I don’t make many big-ticket purchases, but a car repair or like-sized expense should be taken into consideration.
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Net Worth Update

Our net worth crossed the $59,000 mark for the first time yesterday, clocking in at….$59,001.17.  Heh.

Of course, paying the mortgage today will knock that back down, as will other day-to-day expenses, but I did think it noteworthy.  During a given pay period our net worth fluctuates anywhere from $1500 to $2500, depending on what sort of bills are due and how the market it performing.  And while I don’t get hung up on where it is at any given time, I have noticed that both its floor and ceiling seem to be inching upwards each month, which is nice given the direction of the market of late. 

As a point of reference, three years ago I couldn’t even tell you how to calculate such a thing, but in retrospect I think now it couldn’t have been more than $20K.  Yea, us!

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