Net Worth [OYF #6]

Now we’re rolling! 

Happy Net Worth Day!

Now that you have all your account information (balances, names, etc), it’s time to see what you’re worth!

We’re going to be calculating your net worth. If you’re a bit fuzzy about what net worth is, it’s just your (assets) – your (liabilities).

Your net worth isn’t just some random number. It’s a really helpful metric for figuring out how you’re doing financially. 

Have a negative net worth that’s decreasing each month? Then maybe you need to take a look at your spending and/or figure out ways you can earn more

Have a positive net worth? Great! Keep going, and make sure that the number keeps increasing!

What to Include When Tracking Net Worth

Some people like to include anything and everything when thinking of assets (like the Christmas cup your Aunt Clara gave). But we’re not gonna do that – we’re just going to focus on things that have significant monetary value.

Here are the assets that I think should be included in your net worth:

  • The amount in your checking and saving accounts
  • The value of your retirement accounts
  • Your home
  • Investment Accounts
  • The value of your car(s)
  • And high-priced items like art, jewelry, antiques

And here are the liabilities I think you should be including in your net worth:

  • Mortgages
  • Student loans
  • Personal loans
  • Car loans
  • Credit cards
  • Any other debt (like you owing Michelle for those lunches)

All you need to do is fill out the net worth spreadsheet (including in the Organize Your Finances spreadsheet), and the formulas will do the work for you!

You should be able to now see what your net worth is! 

Going forward, when you have your monthly Money Days you can calculate your net worth for the previous month and see your progress!

Just remember that your net worth shouldn’t determine your self-worth. We’re only tracking net worth so we can see where you stand and we can make changes to bump that number up! 

If you aren’t where you want to be at the moment, that’s totally okay! 

(You can see by the spreadsheet that my net worth at one point was $278)