It’s been several months since I updated my net worth or really checked out how my finances were doing overall. I’ve decided it’s way past time and I need to face up to the situation whether it’s good or bad.
The last time I updated my net worth was back in April 2013, so things have definitely changed since then!
This post is about a week late. Oops! I guess being a negative direction I didn’t want to post about it. ;)
April 2013 Net Worth
Liquid Assets: $1,906.19 (-$1,663.04)
Checking Account: $656.19
Emergency Fund: $1,250.00
Long-term Assets: $10,130.84 (+1546.69)
Roth IRA: $10,130.84 (+$1,546.69)
Other Assets: $7,053.00 (+7,053.00)
Debt: -$12,922.09 (-$10,960.43)
Credit Cards: $443.08 (-$219.25)
Student Loans #1: $0.00 ($0)
Student Loans #2: $0.00 (-$1,299.33)
Car Loan: $12,479.01 (-$12,479.01)
Current Net Worth: $6,168.44
Change in Net Worth: -$697.2
This is what happens when you don’t pay attention to your money: YOU MAKE NO PROGRESS.
When I was diligent and focused on my finances my net worth was growing and my income was working for me. During the year that I’ve taken between these two check-ins things have gone nowhere. In fact, I’ve lost money! My net worth is down!
Since so much has happened I will dig into it a little further.
Student loans: I finished these off and have since not taken on anymore. Nor will I! If I go back to school I will pay as I go and finance it without loans.
Car loan: This is the biggest change to my net worth by far – I took on more debt than I needed and ultimately more than my car is worth (I’m using the lowest value for resell to be conservative, but still). Ultimately I love my car and I’m glad I have a reliable, safe, gas efficient vehicle. But the loan did not help my net worth at all. I will use ReadyForZero to keep paying extra each month and eliminate this asap.
Roth IRA: This took a hit when I withdrew money to buy a house but then spent the money on other things like living expenses. I’ve since been growing my account since then and though it has not hit previous highs, I am happy with the progress.
Credit cards: I still use my credit cards but not as often. I try to use debit more often for daily expenses and keep my credit cards around for fixed monthly bills like my healthy insurance and internet. This still helps me rack up points so I can buy things free on Amazon when needed but it doesn’t let my credit cards get out of control.
Emergency fund: While my goal is still $5,000 or at least a couple thousand, I’ve made progress here to get to where I am. I feel comfortable having at least the $1,000 in there and plan to grow it by $50-$100 each month. Sure it might not grow quickly, but it will grow!
Track Your Net Worth & Investments
All of this has made me realize now more than ever how important it is to actually pay attention and track your networth and investments. It’s way too easy to feel like you are making progress when you aren’t making any at all. I felt like I was doing well and moving forward all this past year but really I’ve gotten nowhere.
I plan to more diligently use Personal Capital to track my net worth monthly and I’m also going to use ReadyForZero to keep up a debt payoff plan so my car doesn’t take 5 years to own! Both of these products and free and easy and take hardly any time so there is no excuse for myself or for you not to use them. Join me and let’s make some real progress, ok?