Net Worth Update!
Hello FOGTA Readers!
I have decided to start posting a Net Worth Update. Right now I am looking at doing it every quarter, but that could change in the future if we start making more money (either from our jobs or side income).
For anyone who is not aware, your net worth is your total assets minus your total liabilities. Here’s a helpful cheat sheet.
As of now, I have decided not to put our income into this since it would get way too complicated for me. Also, I want to do these quarterly, so it makes sense to leave it out.
These have always been my one favorite posts to everyone’s blogs, so I wanted to do my own. I took some inspiration from New Millenial Investor and Marriage Kids & Money for the format, so a big thank you to these awesome blogs. Check out their posts by clicking on the links. 🙂
Onto the Net Worth Update!
Assets
Home
I don’t consider our home to be an investment. We live here, and that’s all. However, it does it have a value, so I’ve added that as part of our net worth. It’s gone up, so that’s nice. 🙂
We use the lowest amount between realtor.com and Zillow to get the home value. We also look at the sales in our area to see if either of the two are off. Currently, we are a little low with our number, but I prefer that to
Investments
For the first time in what feels like forever, the 401Ks and the IRAs are going up. Mr. FOGTA just started his 401K towards the end of last year, so this is the first time I am including it in our net worth. 🙂
The IULs always go up since they are designed that way. We always make at least 1% on these. The downside is we never make more than 14%. It’s a trade-off, but that’s why we put the minimum in those accounts. I used to put in much more which is why there’s such a difference between my account and Mr. FOGTA’s.
Emergency Fund
This is the Ally account that we created last month. The goal is to get this account to $25,000 by the end of the year. I wanted to keep it separate for a few reasons. First, Ally earns more interest. Second, it’s out of sight, so it’s out of mind. Finally, it takes a while to access, so we’re not going to use it in a pinch.
Savings
This is where we keep the rest of our savings. Before we opened the Ally account we had four separate savings accounts for different things. The end goal is to have $5000 in savings and the rest in Ally (for the interest rate). For now, we are still figuring out where we want everything, so this is balance is high right now.
Total Assets
Hooray!!!
Liabilites
Mortgage
We are finally here!!! The mortgage is the only thing remaining (See here if you missed the big moment)! Now comes the debate on what to do. I do want to pay it off earlier than 28 years from now, but I also understand that the returns are better elsewhere. More than likely, we are going to end up splitting the difference. I will go over it more in the future.
Total Liabilities
Net Worth
All in all, I think we’re doing okay. We are looking forward to watching this number go up as we get closer and closer to Financial Independence.
The biggest thing is going to be starting to make some form of passive income, a side hustle, or getting more income. With Mr. FOGTA’s job up in the air right now, I am halting doing anything outside of maxing out the IRAs, 401Ks, and savings, but this is very much on my to-do list once things stabilize.
In Conclusion
So that’s my first Net Worth Update. Next one will be at the end of April/beginning of May. By then I will be out of the no paychecks slump and should have a few closings. I plan to have some growth. 🙂
Do you have a net worth update? If so, I would love to read it. Please put a link in the comments below.
Otherwise, what did you think? Good? Bad? Any thoughts? Share that too.
Until Next Time!
-G
May I suggest you consider I-bonds for part of your emergency funds. We use them with Ally as well. The IBonds are inflation adjusted and usually beat Ally and the others by a small margin. There is a risk in that you lose some interest if you dont keep it long enough, but it might be a good idea for some of your emergency funds.
I never even considered that. Something to look into for sure.
Thanks for reading. 🙂
I love net worth updates. I started doing them this year, too! ^_^ My February one comes out next week. 😀
Hooray! Looking forward to it.
Thanks for reading!
Nice and simple liabilities there, eh? Nice! Congrats on having just the mortgage to pay off. I’m in the same boat, though I’m lucky to have a small mortgage. On the other hand, that means my house is worth less, so I guess it evens out net-worth wise.
I don’t have an exact number because I don’t know where I’d get a trusty estimate of what my house is worth (I don’t trust Zillow), but given that house prices keep going up here, I’m finally in the six figures range. Which is startling. But good.
Thanks! Zillow is not trustworthy at all. At least, not in my area. Realtor.com tends to be better, but it gave me a higher value than Zillow. That’s why I look at everything that sold before I give it a value. Congrats on your net worth! 😀
Thank you for reading! 🙂
Is there a reason you want to keep savings in a different line item from emergency fund? Since you can actually close that gap on the EF account with your savings.
I kept it separate since they are in different accounts. One of my goals for February was consolidating the accounts and just having $5000 in savings (for easy access if there is an issue) and the rest in the EF. 🙂
Thanks for reading!
Love how quick and simple your Net Worth is! And that’s a great net worth. 😀 While I don’t anticipate owning a house any time soon, I can imagine it being pretty exciting to know that your “rent” is being put directly towards upping your net worth… Good luck with finding side hustles that work for you guys! 🙂
Thank you. Yeah, the side hustles are going to be interesting. Not really sure what will work for us, but looking into it.
Thanks for reading! 🙂
Looking good! We too are facing the same situation about what to do with the mortgage. I’m excited about a post that is scheduled that goes through a few options. It didn’t turn out to be a clear cut decision when I ran the numbers, which surprised me.
I still can’t believe we can get a savings account for 2.45% APR now, which I think is with CIT Bank. We should hopefully have our emergency fund completed in a month, and will dump the money there. Thanks for sharing.
Thanks! I did post the options we went through with the mortgage. Here’s the link: https://fromonegeektoanother.com/only-the-mortgage-remains/ It didn’t end up being clear cut for us either.
The increase in high APR savings accounts is awesome. I am hoping Ally will increase there’s again since the amount fo accounts with higher APRs is growing.
Thanks again for reading! 🙂
I always struggle with the idea to include our home or not. I like your straightforward thoughts on this issue. “I don’t consider our home to be an investment, but it does have value, etc.” Nicely put. I need a place to live either way! I”m glad it’s worth something.
Thanks! Part of why I include it is due to us owing on the mortgage as well. No point in taking a negative without the positive. 🙂
Thanks for reading!