Net Worth - February 2008
Introduction
I would like to share with you my net worth as it is now and I will plan to update it either monthly or quarterly. You will be able to watch it grow and I’ll be discussing my techniques and tricks used to increase my financial wellbeing.
Assets
1. Home Value - $189,900
Liabilities
1. Mortgage - $168,840
2. Credit Card 1 - $345 @ 17%
3. Credit Card 2 - $4892.50 @ 0% through November 2008
4. Credit Card 3 - $4429.88 @ 0% through February 2009
5. Credit Card 4 - $2212.89 @ 0% through February 2011 (RoomsToGo - obviously)
Total - $180,720.27
You might ask why someone in my financial situation would but brand new furniture from RoomsToGo. That is a valid question, and and I have a good answer. It was actually and great financial move for us.
My wife’s parents offered to buy a living room set as a house warming gift when we bought our new house. RTG was having one of their famous “pay no interest forever” sales so we took the money and paid of Credit Card 1 (almost) and financed the couches at 0%. So, we got new awesome furniture and a balance transfer for 0% for 3 years!
Total Net Worth
I own 2 cars with no payments but I do not count them towards net worth as they are not easily liquidated and depreciate every time I get in them. With that in mind, the formula for calculating net worth is as follows:
Assets - Liability = Net Worth
$189,900 - $180,720.27 = $9179.73
As I build up my income from my business, I would not be terribly surprised if I see my net worth fall before it begins to rise. Even though we have significantly cut back our lifestyle, we are still just a bit under our budget, income-wise. That should change in the next few months and we’ll be able to begin the debt snowball and our journey to wealth!
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