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?