Know Your Net Worth

New month! New net worth calculation!

I’ve only recently started tracking my net worth. I was inspired by J. Money over at Budgets Are Sexy to really start tracking this number. He’s been in the personal finance game for a long time and is getting super close that million dollar number! OMG! How cool will that be for him?

Are you wondering what the hell I’m talking about? Do you know your own net worth?

Basically your net worth is when you add up all of your assets (savings accounts, retirement accounts, homes, cars, gold coins, collectible beanie babies, etc…) then you add up all of your liabilities (loans, credit card debt, mortgages, medical debt, etc…) and then you subtract the your liabilities from your assets and that number is your net worth.

If the total number of your assets is larger than the total number of your liabilities then you have a positive net worth! If your debt exceeds your assets you have a negative net worth.

That’s the bottom line.

Here’s an equation for you math folks:



– Liabilities

Net Worth


I wonder how many people truly know their net worth. I will admit, I hadn’t thought much about it until I started blogging.

When I entered into the world of personal finance blogging I started seeing people’s INSANE graphs and they’re GIANT net worths. Now, it’s important to understand that the personal finance blogosphere is not representative of the general population.

So it can be pretty fucking scary to see people reporting 7 figure net worths, look at your own bank accounts, and realize you are worth nothing.

But it’s also kind of motivating. Looking at your net worth month over month and watching it either grow or decline can definitely challenge you to want to do better each month and squirrel away just a little bit more dough.

I’m pretty happy right now. My husband and I have a positive net worth. That’s a big step considering how few Americans actually save any money on a regular basis.

We have money in our retirement accounts, we have money in savings, we have paid off cars. All of these are assets that we count in our net worth.

We do not have any credit card debt or student loans so our liabilities are pretty low. We do have mortgages and a car payment, though. Those are included in our liabilities.

I actually track my net worth in two different ways. I track a monthly view in a spreadsheet that is just for me and that I update on the first of each month. Then I have a Personal Capital account in which I can see a finer level of detail as it updates every time I log in.

I’m not quite ready to post my net worth on the blog. I’m doing this semi-anonymously but I don’t feel super confident in broadcasting that information over the internet ether yet. But I was thinking I might show percentage changes every month or so. Would you guys be interested in that?

As long as I keep on keeping on in terms of my auto-savings for retirement this number should just keep going up over time. Even if I never save another dime in my savings accounts, we do have money that is direct deposited to retirement accounts every month. That alone, in conjunction with paying down our mortgage, will keep our net worth going up.

But this year, I think, might be the year we make a real push to bulk up our liquid savings and emergency funds. We have some long term goals to do some work to our house and I want to pay for that all in cash if possible. That means hoarding money like a dragon hoards gold coins.

If you’re interested in calculating your own net worth, you should check out Personal Capital! I’ll drop my affiliate link right here – sign up for Personal Capital – if you want to try it! Full disclosure, I get a small amount of money if you sign up for a Personal Capital account using my link!

If you don’t want to sign up for an account, that’s cool. Check out J. Money’s net worth calculation spreadsheet! It’s pretty straightforward and easy to use.


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4 Responses

  1. you definitely want to be able to pay cash for house renovation, especially if you are riding a mortgage. are they necessary repairs (must do) or wants (cosmetic)? it only took us with 2 incomes about 10 years to go from near zero to 7 figures and we didn’t miss out on the fun or live like hobos. we did open a roth for each of us, the gold standard of money. 1st time i read on here. best of luck with the blog and the life.

    • Basic Bitch says:

      Thanks, Freddy! Yes, I’m a big fan of not taking out loans to do home improvement stuff. If you have to take out a loan, you really can’t afford to remodel your bathroom!

  2. Tracking our net worth became a monthly task about 3 years ago and I really enjoy it! It is a great way to stay motivated and keep a snapshot of our finances up to date 🙂

    • Basic Bitch says:

      Ooh! 3 years! Great job! I hope I get to that point – I have a great new spreadsheet and Personal Capital to help, but just looking at those numbers in conjunction with my 4% number is a great motivator!

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