A reader sent me that nifty graph up there and thought it was worthy of passing along in case you want to add to your net worth tracking as well ;)
Such a cool idea adding life events to the history, right?
Since so much of it plays an active role in how our money turns out?
Here’s the words she sent along with it, but not nearly as fun to see than the picture :)
Here’s our story. :)
When my husband and I met in late 2010, we were earning $105k combined. We now earn $248k with additional bonus potential (“OMG!!” *faints* every time I do the math). Our salary increases are solely the result of hard work and dedication, as neither of us has college degrees. We are now in our third semester of taking online courses in the hopes of eventually crossing that off the list.
My husband has two kids from a previous marriage, and his ex receives *quite* a bit of his salary. While we are obviously supporting my wonderful step-daughters, nearly 20% of our gross income does not add to our net worth. We are saving for college for all three children, two of whom have minor special needs.
Both of our exes are CRAZY spenders, and those relationships were incredibly unhealthy in just about every way imaginable (lots of stories for another day!). Neither of us realized how much happier life could be with a supportive partner. 👫 I brought consumer debt into our marriage, and my husband brought a credit history of bankruptcy and a separate foreclosure.
It is possible to aim for FI, regardless of how many degrees you have, how many kids you support, or how much financial baggage you bring into the relationship. We have made a lot of changes to help us move down the path, and we know there is a ton more we can do to optimize our lives over the next several years. Let’s DO this!!
YES!! Very true on those last lines there! And what a powerful example of what happens when you PUT IN THE WORK even without degrees! Super inspirational…
I took a few minutes to mock up my own version of net worth/life events, and here’s what I came up with:
A bit messy, but you can get a good sense fast at what the major players are here, haha….
The stock market, website selling, and then all those babies popping out that effectively halts life until you can come up for air and figure out what the hell just happened to your wallet, haha… So glad we’re over that scary period!
But I gotta say – after 11 years of tracking this stuff, this is the first time I’ve actually seen such a descriptive snapshot like that all in one graph. Despite housing over 100+ updates in one main page as we’ve been doing… But again – a picture paints a thousand words! And they’re much more interesting to read than real ones ;)
So highly recommend giving this a shot and seeing what you come up with too… Bonus points for sharing it with all of us so we can ogle and be entertained as well!
Here are some other items you can add to your spreadsheets for even more sprucing up:
- Your FI Date
- Your credit scores
- Your cash flow projections
- Your insurance policies
- Your Lifetime Wealth Ratio™ (Net Worth ÷ Total Lifetime Income Earned)
- Your debt-to-income ratio
- Your car maintenance logs
- Your other assets you don’t include in your net worth
- And my personal favorite –> the years left until your expected death!
There’s always something you can add for more fun optimizing, haha…
What else do people track?? Tell us all your darkest spreadsheet secrets!! ;)
*Name changed to protect the nerdy
PS: If you’re just getting started in your journey, here are a few good resources to help track your money. Doesn’t matter which route you go, just that it ends up sticking!
- The "Budget/Net Worth" spreadsheet - the colorful Excel template I personally use.
- The "Money Snapshot" spreadsheet - a simple Excel template I created for my former $$$ clients
If you're not a spreadsheet guy like me and prefer something more automated (which is fine, whatever gets you to take action!), you can try your hand with a free Personal Capital account instead.
Personal Capital is a cool tool that connects with your bank & investment accounts to give you an automated way to track your net worth. You'll get a crystal clear picture of how your spending and investments affect your financial goals (early retirement?), and it's super easy to use.
It only takes a couple minutes to set up and you can grab your free account here. They also do a lot of other cool stuff as well which my early retired friend Justin covers in our full review of Personal Capital - check it out here: Why I Use Personal Capital Almost Every Single Day.
(There's also Mint.com too btw which is also free and automated, but its more focused on day-to-day budgeting rather than long-term net worth building)
Jay loves talking about money, collecting coins, blasting hip-hop, and hanging out with his three beautiful boys. You can check out all of his online projects at jmoney.biz. Thanks for reading the blog!