Here are the numbers broken down:
Assets increase: $2,064.37
Debt decrease: $2,468.03
Net increase: $4,532.40
I can’t express enough how important it is to get educated about what net worth is, how to make it grow, and why you need to. I’ll admit, I knew what it was: assets minus liabilities, so what? I avoided giving it any further thought because mine was so dismal and depressing. I felt like I was too far in debt to worry about important financial information like that.
Once I started to learn about net worth and pay attention to my own, a whole new world opened to me. I credit Dave Ramsey‘s program for the initial tough-love kick in the pants. He taught me that when I’m $300k in debt is the BEST time to learn about personal finance. He made me understand how I got there and that I needed to change my attitude about money in order to get out of the mess I was in. He made me believe that debt reduction is a process just like weight loss or anything else, and that no matter how far in debt you are, it is entirely possible to get out. Love him or hate him, these are lessons that people who know nothing about personal finance need to learn to take the first steps toward financial freedom.
I quickly moved on to other personal finance blogs like Mr. Money Mustache, Bogleheads, Frugalwoods, and Budgets Are Sexy and devoured everything they posted. One theme rang true: if I was serious about changing my financial life forever, I needed to grow my net worth.
Combining debt reduction with watching my net worth increase was a real game changer for me. Now I understand completely why it’s important to get my debt down as quickly as possible. Now I understand why it’s important to contribute to my 401k to get the company match. All the things that people told me were “important” never made much sense until I understood the big picture: Net worth.
To get started learning about net worth, I recommend reading Worthy: Boost Your Self-Worth to Grow Your Net Worth, by Nancy Levin. Don’t be embarrassed to admit you don’t know the about’s or how’s about your net worth. We’ve all be there! Don’t put it off any longer. It’ll be the best gift you ever give yourself.
See my net worth as well as those of other finance bloggers at Rockstar Finance’s Net Worth Tracker.
Previous net worth updates: