Some bloggers love capturing their net worth every month. Others say it makes their skin crawl, or feel it is too personal. At first, I was wary of doing this as I felt ashamed or that I was letting people in on the biggest secret in my life. Then I realized net worth updates are some of my favorite things to read from other bloggers (like Luke’s “Naked with Cash” series, or Jordann‘s monthly net worth summaries) and I thought “If I like it, maybe others like it too.” Some may like it in a voyeuristic way, or as a means of comparison. I hope it serves as motivation for everyone to start tracking their own net worth, even if it’s just a private thing
you do when you’re bored at work, as it is the single best tool you can use to track your financial stability and progress.
I’ve decided to track my net worth on a quarterly basis, since I am a small-potatoes marketing manager and writer and my income and debt payments do not change in a very exciting way month to month. Besides, reporting three month variances is so much more impressive than month to month, don’t you agree?
In this post, I reported my new net worth because I had just purchased a house and begun renovations. Although I raided my savings to purchase and re-do the home, my net worth increased substantially to $14,993.00. from the $6400.00 it was in June (Q2) This was largely due to the equity I have in my home, and yes, I do include the value vs. debt on my home in my net worth updates. There is a lot of controversy on that subject, but it is what works best for me.
So, my end of year net worth was $13, 607.24 (-9.2% from Q3)
The value of my home remains firm, and while I am about halfway to where my savings account was before the house, I did have to take on a loan from my parents in November to cover the cost of the renovations/lost wedding expenses, which accounts for the large overall decrease you see above, even though it is not included in the debt percentages above, but will be going forward.
My biggest priority in Q1 2014 is to build my emergency fund back up to 3k, then pay off my debt. We’ll see how it goes!
How did your year-end net worth turn out?