Monday, February 27, 2017

What is this NetWorth blog?

After being inspired by MrMoneyMustacheJLCollins, and MadFientist for a number of years, we decided to create this space where we put up our net worth every month.

What is Net Worth?
If you add up all your assets (bank accounts, retirement accounts, CDs, investments in the stock market, real estate investments, treasury bonds, HSA, 529 accounts etc.) and then subtract any and all outstanding loans and debts you have (car loans, mortgage, tuition loans, credit card debts etc.) the answer is your net worth.

Why is Net Worth important?
Net gives you the single most reliable number where you are at the moment. Or how far you've come. Or where you need to be. To be Financially Independent and/or Retired Early (FIRE).

Who are we?
We are a mid-30s couple, with a pre-schooler (as of Feb 27, 2017), living in the American midwest. Both of us work. Our combined annual gross salary is ~$200k. Details about us are intentionally vague because the point of this blog is not who we are and where we live and how much we make (I guess how much we make does play a role in how much we save); the point is how we are increasing our net worth every month. We will refer to us as M and W.

What is our goal?
To be FIRE by age 50. That would mean all of our expenses at that point will have to come from our investments.

Why this blog?
Two reasons:
1. To publicly, though anonymously, document what we are doing, all the while spurring us to save faster; and
2. By showing it to the world, inspire others that it can be done

We will post our net worth, and the changes, at the end of every month, ideally on the last day of every month, but practically it will be within the last week of the month.

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