I like to track my family’s financial progress through monthly net worth updates. Net worth is simply the value of all of someone’s assets minus all of their liabilities. To calculate it, I add up all of our household assets (ie. stocks, bonds, mutual funds, real estate, gold etc.) and subtract any outstanding liabilities (ie. debt owing – things like credit card debt, mortgage debt, line of credits etc).
The result is simply a snapshot of what my family is worth at a particular moment in time and does not give any of the relevant details as to how or why we reached that point. For that kind of information, please refer to our dividend income / monthly highlights section.
In general, I want to see that my assets are increasing and that my liabilities are decreasing. The net worth updates just lets me know if we’re headed in the right direction.
Net Worth Updates Archive: