Net Worth Update Mid-2019

Since we bought our house, I’ve found Net Worth to be slightly less of a useful number than more liquid assets, so I started tracking them separately.

Until a house is sold, that’s not easily accessible money.  There’s also the question of realtor’s fees – an immediate hit of 6% of whatever the house sells for.  And with our time horizon for staying in our current house – a handful more years, or until we retire? – I feel nervous even counting on the sales price of the house.

I’m still deciding whether or not I feel comfortable sharing actual numbers (I mean, you could track my #’s down if you really want to know), so what follows is a summary based more on percentages and trends (as inspired by StackingPennies and Revanche), at least until I’m as brave and badass as Save.Spend.Splurge.

I’ve been tracking my net worth for a LONG TIME – it’s fun to see the growth, although I supposed I also have to thank the longest economic expansion in history.  Up until 2009/2010 it’s just my accounts, which might account for the numbers increasing while the stock market was tanking.

NW_jun2019

The Real Estate values above use the purchase price of our house minus 6% realtor fees and the mortgage balance.

  • According to Zillow, our house is now worth about 10% more than we paid 3 years ago, but there’s no guarantee that this will be true when we move.
  • I expect this to tick up fairly regularly over time, at least until my ultra-conservative brain decides to take the guaranteed 3% return.  Or until we stop having to spend money on childcare and I can throw that annual $30K toward the balance.
  • It accounts for ~15% of our net worth.

Cash & Investments includes everything else: retirement accounts, cash savings, taxable investment accounts, bonds, etc.

  • Over 80% of this number is in Retirement Accounts – 85% of that number is in 401Ks, with the rest in Roth accounts. These accounts are mostly in S&P500 or total stock market index funds, with a small % of international, small cap, and bond funds mixed in.
  • 11% is in cash, CDs, or bonds.
  • We have a comparatively small amount in taxable investments – stock shares from my last company and a mutual fund that Husband invested in early in his career (with a 1% fee, whyyyyyyy!) that would be a substantial tax bill if we sold now.

We are 40-60% of the way to financial independence… there is a pretty wide range of possible FI numbers depending on how conservative I try to be with our annual spending and withdrawal rate.

Do you track your net worth?  Do you find it to be a useful metric, or is there a piece of it that is more interesting?

3 Responses

  1. I do track net worth so that when I spend a ton of money I look back at where I was even last year and say — it is not that bad. Net result is still promising.

    Also thanks LOL .. do not think of myself as badass quite yet. Once I hit $1M maybe.

  2. The most useful metric for me is “investable assets”, which is basically ignoring both the mortgage and house value. But I find it all pretty interesting! It is so amazing how networth has snowballed, and also, the monthly swings that are equivalent to yearly swings in the earliest years.

  3. I absolutely track it all. I don’t publish all the info but I find it really useful to see trends monthly and annually even though it’s really pretty messy in that period we were not combined and we combined finances over a period of years. Plus I like the graphs 😉

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