Every month we like to figure out our net worth to keep track of our progress towards meeting our goals. We share these numbers here to keep ourselves accountable, and for our readers to follow along with our journey.
What is Net Worth?
If you are new to tracking your net worth, start with the post, How to Track Your Net Worth. Your net worth is all of your assets, minus your liabilities. Since Mr. Farmhouse Finance and I combine finances, I track our net worth as a couple. I enter our numbers into an Excel spreadsheet once a month, usually on the 14th or 15th. For the purposes of these posts, I will be sharing a summary of our numbers entered into a Word table.
Here is our net worth as of October 2017:
What’s included in our net worth?
We have many different retirement, checking, and savings accounts, as well as a number of different credit cards. I total up the numbers for these different accounts, and add them to the appropriate category on our table, rather than copying the entire spreadsheet with all of our different accounts. For the Kelley Blue Book value, I always use the dealer trade-in amount, since that is a more conservative estimate of what our cars are worth.
For those of you wondering about all our different accounts, here is a list:
- Retirement Accounts (Roth IRAs, 403b, Roth 401k from old job)
- Cash (personal checking accounts, joint checking, savings accounts for down payment for house, emergency fund, vacations, gifts, exercise equipment, taxes)
- Cars (2013 Subaru Impreza and 2007 Toyota Prius)
- Credit Cards
What’s not included in our net worth?
Mr. Farmhouse Finance and I are both public school teachers. We have been contributing to the Teachers’ Retirement System, and will continue doing so throughout our careers. We have decided not to include this in our net worth summaries at this time, but may change our minds about this in the future.
Why so much cash?
We have been saving for about two years for a down payment for our house, and have opted to keep this money in cash because of our shorter timeframe. We also are building our emergency fund and our (now depleted) vacation fund. Once we build our house, we will continue to keep a small bit of savings in cash, and invest the rest.
This Month’s Progress
Wow! This was a great month.
We had higher than usual income this month (which accounts for the change). At the end of September, we received half of the health insurance buyout from my school. I also recently transferred my membership from one NYS retirement system to the Teachers’ Retirement System, and with it an earlier tier status. That meant that my school had to pay me back a whole year of contributions that I had made to the system before the transfer was complete. This money is being set aside in a savings account to buy back previous service, but it is included in our net worth for now. I’m also in the process of rolling over other retirement accounts to my IRAs, so there will be a little bit more “found” money coming soon to my net worth updates.
We also had higher than usual spending this month. Mr. Farmhouse Finance attended two bachelor parties, and I attended a wedding. We have two more weddings coming up later in the month, so this next month will be pretty spendy, as well.
Goals for Next Month
We have some money set aside for these upcoming weddings, so after we pay for the gifts and hotels, we will continue trying to build our vacation fund.
I am in the process of opening a 403b with my school, so I will start contributing to that this month. I will also start working a couple extra hours each week helping students after school, so there will be a little extra in my paychecks to put towards my contributions.
I’m looking into buying discounted lift tickets and would like to run a spring marathon, so those are expenses that I will need to start planning for. I’m thinking of designating a savings account for my (not-so-cheap) hobbies, so those expenses don’t totally throw off my monthly spending when they come up.
How are you doing with your goals?
Illusion of Scarcity Worksheet (PDF)
Download this free worksheet and start paying yourself first.
- Budget for financial obligations and recurring expenses
- Prioritize your financial goals
- Make all your transfers on payday