Why I track my Net Worth:
You can not improve if you don’t have a starting point.
And for me, that point was December 2014. I had been working for a little over a month after being unemployed for 4 months and thought I should have a small emergency fund. At least $1,000 and I could build on it throughout the year. So I started “googling” and one day I stumbled across an article on The Simple Dollar on how to calculate what your Net Worth should be for your age. What I actually had, didn’t come close to what I should have had. So I made it my mission to increase my net worth in 2015. It wasn’t going to be anywhere near the figure I calculated but it was a start.
What is included in my Net Worth Calculation:
For my assets, I include:
Social Insurance – This is Bermuda’s National Pension Fund. Everyone is supposed to pay into this and everyone is entitled to the benefits. The kind of benefits you receive when you turn 65 depends on how many contributions you have made during your life.
Employer Pension – I currently save 10% of my salary and my employer matches my contributions. Because I am young, I chose an aggressive portfolio and hope that it performs well.
Cash – This is the money I keep for groceries and a baby bottle the I keep all of my loose change.
Emergency Fund – I received my pension payout in March 2017 and put that money right in this fund. Currently I have it in a savings account and I need to figure out where I am going to keep this money.
LifePlan – Every month I save $3k towards a down-payment for a house and hope to have the $100k by the end of 2018.
Me Money – We get an allowance every month and whatever I have left over I put in this account. This money is for whatever I want. Each month I try to spend as little as possible so I can put my leftovers in this fund.
Current Net Worth:
April 2017: $82,344 (3.81%)
March 2017: $79,320 (8.61%)
February 2017: $73,031 (7.54%)
January 2017: $67,907 (7.92%)
Prior Year’s Ending Net Worth:
December 2016: $62,921 (Officially Became Debt Free in August 2016)
December 2015: $29,762
December 2014: -$11,123 (Started Tracking)
Note: Bermuda dollars and US dollars are 1 to 1.