After getting all of our financial statements in order, I made the first calculation of our total net worth (roughly calculated as assets – liabilities). What followed was not pretty. My Wife and I know how much debt we have, yet seeing the number totaled up and written down was a shock. I will not put numbers up here, at least not yet. I will, however, keep track of our progress on a monthly basis to see how we are coming along. It will be interesting to see how much of a change occurs month to month.
What do we plan on doing from here out?
The biggest drag is obviously our debt level. Since our wedding in June we have been using the debt-snowball method to pay off our debts. The first credit card debt was knocked out at the end of November, which felt great. Next up is the car, which we aim to have paid off in July, a full year earlier than the maturity date. When that’s out of the way it will really begin to feel like we’re making a dent in our debt levels.
On the other side of the net worth equation are our assets. Most of our money is in 401(k) retirement accounts, with a small additional amount in an emergency fund. We will both continue to take advantage of our 401(k) accounts, and will continue to fund the emergency account. I anticipate that by July, when we pay the car off, our assets should outweigh our debt and our net worth will turn positive (a great thing even if it is only a few dollars!)
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