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Welcome to my 1st net worth update!
This may be one of the scariest posts I ever make.
Many personal finance blogs I follow post net worth reports monthly. I am hoping to do the same for a number of reasons:
- Goal Tracking – these posts will help me to actively track each of my goals and ensure I am setting myself up for success
- Accountability – by posting my net worth throughout the year I will be held responsible for
- Inspiration – I am sharing this information in the hope that it will inspire some of my readers to start their own journey to financial freedom
My 2016 Net Worth
What is it?
Your net worth is a snapshot in time that shows your total wealth at a given moment. Typically, it is equal to your assets minus your liabilities. By comparing your current net worth, to your net worth at a previous point in time you will be able to see whether or not you are reaching your financial goals. An increase shows that the steps you are taking in your financial journey are working, while a decrease may require further investigation.
The Power of $0
Recently, I discovered the idea of being worth $0 and I haven’t been able to shake the idea since. How amazing would it be to be worth nothing?!
Now, this may be a silly concept to some; however, as some with A LOT of debt, the idea of getting rid of that debt and starting back over at 0 is highly appealing!
My Starting Point
According to YNAB, as of December, I am worth $(31,272). (That is such a sad number.)
Let’s talk about some of the reasons why my net worth is so very low.
I have a lot of debt:
- Car Loan $(6,622)
- This line of credit started off at nearly $10,000. So far, I have paid off $3,378.
- Student Loan $(32,701)
- My student loan balance at the beginning of 2016 was $35,391. This year I paid off $2,690.
While the amount of debt I have paid off isn’t very impressive, I have also been working to save money in my RRSP’s and TFSA.
- RRSP $8687.61
- TFSA $550.26
I am hoping to have a more concrete saving and repayment plan in place for 2017. Keep your eyes peeled for that post in the new year!
Related: My 2017 Personal Finance Goals
Calculating Your Worth
Interested in calculated your own worth? Check out this handy Net Worth Calculator from MoneySense!
Do you track your net worth? Why or why not?