Friday Financial Tidbit-How significant milestones and events impact our finances

For four years now I have been tracking my family’s net worth at the end of each month. Yeah, I might be a nerd for tracking it each month but it is something I enjoy doing and I recommend that you at least check yours once a year. After tracking for four years I have 48 months’ worth of data, I have noticed some trends and can see how some significant financial life events have impacted our finances.

As you can see from the graph above my net worth was on a downward trend in 2008 and the first half of 2009 mostly due to the stock market crash, the housing bubble pop, and getting ready for a wedding. But my wife and I started to make some headway once we got married and had two incomes (who says marriage makes you poorer?) Our pace of growth started to slow down once we went down to one income, which was expected, but it was still growing each month.  Last July we had a small dip when our son was born, but the last few months we have been back on an upward trend.

Every time I look at the graph, it is a good reminder that what we are doing with our money is working. Since I have started tracking it, our net worth has increased 4 fold! By avoiding debt, investing for our future, and aggressively paying off our mortgage we are seeing our net worth increase pretty much every month. However, our net worth is not a measure of our self-worth but it is still nice to review every once in a while.

What about yourself, do you keep track of your net worth? If so how have major financial events impacted it?

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About Jon White

Giving people hope and seeing them win with their finances is something I have a strong passion for. Because of this passion I started JW’s Financial Coaching in the summer of 2010. Financial coaching has allowed me to combine my passions of finances, teaching, and helping others by helping people get on the right track financially. I'm interested in hearing your story so please do not hesitate to interact with me through social media.
This entry was posted in Budgeting, Friday Financial Tidbit, Net Worth and tagged , . Bookmark the permalink.

4 Responses to Friday Financial Tidbit-How significant milestones and events impact our finances

  1. Interesting correlation with net-worth and life events. Man in 10 years you’ll be a rock star!

    • Jon White says:

      Thanks Brent, my wife and I are both looking forward to being a financial rock star. 🙂 I am just amazed at how being steady and consistent with your finances pays off over time. I thought for sure our Net-worth would plateau after we went down to one income, but it didn’t! It also didn’t plateau when we had our son, in fact it keeps growing every month. Amazing what can happen when you view your finances like the tortoise and not the hare.

  2. donationcan says:

    Wow! I track my net worth, but I don’t compare months. That’s a great idea. I like how you distinguish life events to net worth. I’ve noticed that they take a dip in those areas, however, the eventual outcome is a growth. I’m really nervous about separating from the military next month and going to school because of the loss of my income. You just gave me a reality check that in the end my ROI will be an increase.

    • Jon White says:

      In the short term you loss of income will hurt especially if you are tracking your net worth monthly. However long term you will be fine and you’ll be glad you made the decision to go to school.

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