Our net worth has hit $3 million and we're retiring this week.
April Fool's! Sorry, but I felt like I had to make at least a lame attempt...it's tradition...
To get serious, we calculate our net worth as listed below. We don't include the value of our possessions, we round down to the nearest hundred for assets, and we round up to the nearest hundred for liabilities.
Assets
1. Cash - $24,500
2. Stocks - $12,400
3. Retirement - $34,500
4. Home - $130,000
5. Cars - $16,000
Liabilities
1. Home - $73,300
2. Car - $10,700 (We made an extra $1000 principal payment in mid-March, woot!)
Total Net Worth = $133,400
Increase/Decrease = Up $5300 from last month
I base the value of our home on two things: comparables selling in our neighborhood and the estimated appraisal by Chase Home Value Estimator. I will always estimate low.
I base the value of our cars on Kelley Blue Book's Private Party Value of our vehicles in "Good" condition truncated down to the nearest $1000. For example, if my car is valued at $4600, I'd calculate that as $4000.
Please feel free to visit the archive to see our past net worths.
Posts
1 day ago
I had a pretty good month because of the debt elimination.
ReplyDeleteMarch Net Worth - $16,684 up $13,145 from last month.
Bonuses can have that effect. :-)
Even if you have not hit 3 million net worth yet, you are making very nice progress. I like the way you apply a conservative measure to your assets. It is so easy for us to overvalue what we own, especially our house.
ReplyDeleteNice progress! You never know, 3 million may not be too far off!
ReplyDeleteMikeS, woot!!! Yay bonus!
ReplyDeletectreit, thanks!
ReplyDeleteYep, I don't want to make the overvaluing mistake since I'd only be lying to myself, right?
Holly, I'd love to take credit, but it was mostly just the stock market...when you're invested in 90% stocks (even our target date mutual funds are heavy in equities), a slight change makes a huge difference. So far, so good. :-)
ReplyDeleteI just cross my fingers that stocks don't crash again since our net worth would look really sad and now everybody gets to see it...lol.
Note to anybody who doesn't know: My husband and I are in our mid-20s...that's why we are so heavily invested in equities. Please don't follow this example if you're close to retirement...you don't want your money to swing so much when you need to depend on it, right?