Here is our first net worth statement. Moving forward I plan to total up all our accounts on the very last day of each month and provide them in this format.
At the top-level I intend to separate out Assets and Liabilities. This provides the best overall financial snapshot at any given time. I can quickly see how things look — what we own, what we owe. Our net worth is then calculated by subtracting our liabilities from our assets. In even simpler terms, net worth is the difference between what we own and what we owe. Since this is our very first posted statement, I wanted to take a little time and explain the line items within each section of the statement:
Cash & Savings – Includes balances in our checking account, savings account, and any cash held at home or in our wallets/purses. This is money that we can quickly and easily access.
Taxable Brokerage Accounts – Includes the current value of investments held in our Ameritrade iZone and Vanguard accounts. These are regular accounts with no tax-advantaged status for retirement. The typically investments in…
Note From Author
The full “May 2005 Net Worth Update” post has been back-dated to 05/31/2005. But it was originally published to the Financial Independence Champion (FIChampion.com) Blog on 05/25/2016.
Why Back-Date Posts?
I mentioned in my first post how this blog will be a little different than any other ones you may follow. I still plan to talk about personal finance, rental property, travel, and the pursuit of financial independence. But to give all these topics the right context and the full picture, I need to start at the beginning. I need to fill in the details of life from 2005 until now. I want you to see the successes, the struggles, and all the milestones we passed along the way. Therefore most of the “new” content will be back-dated to their appropriate dates in 2005, 2006, and beyond — until we’re caught up!