Our Annual Net-Worth

Every year at this time, I pull together all my statements to arrive at an accurate financial picture. It gives me a sense of how we are doing in the context of our life goals and balance between assets and debts. I also put together a picture for our boys as well.

I try to be conservative in determining our net-worth, which is nothing more than assets minus liablities. I use zillow.com for an estimate of the house. For an estimate of our cars, I take the purchase price and deduct $1,000 each year. I exclude the value of hobbies or furnishings. Liabilities include credit card, mortgage, and equity loan debts. Assets include the house, cars, investment and liquid accounts, and retirement funds.

Like most people, we've taken a hit this year. In fact, it is the first time I've seen a decrease in our net worth due the the deflation of housing and stock values. However, I remain confident about our financial future.