Tracking Our Net Worth

Why do we track our net worth?

Knowing your net worth is a helpful measure of your progress to financial independence.

And just so we are clear…I do NOT share our net worth just to show off how well we are doing. I want to be transparent about our finances and show that anyone can achieve financial independence. You might be in a totally different place than us, AND THAT’S OK! Everyone will increase their net worth at different rates. The important part is that you track it.

We will be drawing from our investments in early retirement to cover our spending (which you should also track). According to the 4% rule, we will reach financial independence when our spending is 4% of our net worth. We want to both increase our net worth and decrease our spending to speed up our timeline to FI. Right now, our goal is to build up a net worth of $1,000,000 by 2027.

Is net worth the only thing you should track?

No! Net worth isn’t everything.

Your spending is important, too. You might even want to consider how much you are spending compared to your income to come up with your savings rate.

Some people scoff at the idea of net worth entirely and think you should only consider cash flow.

The important thing is that you find what works for you and keeps you motivated!

Net worth updates

Click on the links below to read about the dirty details of our finances.