Before I discovered the world of personal finance blogs, I thought I had a good handle on my family’s finances. In reality, all I had were vague ideas floating around in my head: we had retirement accounts that we were regularly funding, we had an affordable mortgage and we had no issues sticking to our monthly budgets. I thought we were doing okay financially, but I had no real details to support my conclusion! Thanks to J. Money’s template, I’ve been able to get my financial house in order and have been tracking our progress religiously over the past few months. It’s hard for me to convey exactly how motivating this exercise has been for us and if you aren’t already doing so, I encourage you to track your net worth on a regular basis as well!
Before I get into the nitty gritty details over the various components of our net worth, I want to point out the two numbers I show below our net worth table:
1) net worth without primary home
2) debt-to-net worth ratio
Though our total net worth is an important number, what I really care about are these two numbers. In my day job, I would call these our key performance indicators (KPIs). They allow me to track my progress towards my ultimate goals: financial independence and de-leveraging our family’s balance sheet. I’ll post more about these KPIs in the future so for now, let’s get into the net worth components.