We calculate our Net Worth and FIRE Net Worth and track them monthly. If you would like to see all net worth posts use this link here.
FIRE Net worth December 2021 – $389,452 (up $8,897)
Total Net worth December 2021 – $1,156,567 (up $12,006)
Total Assets December 2021 – $1,708,457 (up $10,338)
In December we invested a total of 3k (outside of super/retirement) via Pearler’s auto investment feature (as per our regular investment strategy).
In 2021 we invested 60k into ETFs. We also hit our super stretch goal of having 200k invested by December 2021 (excluding the shares/ETF’s we purchased using borrowed funds). This means we have built our share portfolio to 200k in just under 2.5 years (not including debt recycled funds). Our next milestone will be 400k in our portfolio (outside super) which we should hit in Jan/Feb 2022 depending on market conditions of course.
Our retirement funds continued to grow thanks to generous employment benefits (My husband receives 17.5% employer superannuation contributions).
Total Liabilities December 2021 – $551,890 (decreased $1,668)
Our liabilities decreased this month, and I’m looking forward to getting it below 550k (although this isn’t a huge priority for us at this stage). Our interest rate is 1.99% and we have a variable home loan.
Total Net Worth Increase in 2021 (to date) = $396,347 (almost 400k)
End of 2021 Goal 1 million dollar net worth: Completed August 2021
How do I track our regular net worth? (keep scrolling to see how we calculate our FIRE net worth)
I’ve tracked our net worth since mid-2019 and enjoy seeing it grow over time. I strongly believe that tracking can assist you in staying the course, because let’s face it this getting wealthy business takes time (and it’s easy to feel like you’re not making progress and lose interest).
Being a bit of a spreadsheet nerd I track our net worth in a custom-made spreadsheet which is available here for $5.50.
I also track it on a day-to-day basis on a free IOS app called ‘My Net Worth’ so I can see how I’m going over the month, and then I enter the details from the app into my spreadsheet.
How do you calculate net worth?
If you don’t want to download the free IOS app or use a spreadsheet you can calculate this manually.
- Writing down all of your assets and liabilities separately.
- Then add up all of your assets together to get a figure (write this down).
- Then add up all of your liabilities together to get a figure (write this down).
- Then take the sum of your assets and deduct the sum of your liabilities.
- This is your net worth.
Net Worth = (Sum of your Assets) – (Sum of your Liabilities)
How do I track my FIRE Net Worth?
Calculating your FIRE net worth is slightly different to calculating your regular net worth.
FIRE Net worth = FIRE Assets – FIRE Liabilities
FIRE assets for us are those that are invested, earning income, and accessible to you now. These assets and liabilities don’t include our home, car, furniture, collectibles, jewellery, and retirement accounts that we are unable to access until the traditional retirement age (e.g. Superannuation for us Australians isn’t accessible until 60 years old).
Note: You may wish to include Super/Retirement if you plan on retiring at an age where you can access these, or you may want to look at Aussie Firebugs calculator here which allows you to incorporate your super/retirement into your FIRE plan. We have opted not to do this as superannuation rules around access are controlled by the Australian Government, and therefore could change at any time (personal choice and not advice).
Happy Calculating !!!!! If you don’t want to do the calculations yourself the Net worth Tracker I use is available in my Etsy shop for $5.50 (click on the image below for the link). I’ve also just updated it recently to calculate your FIRE net worth as well. If you’ve already purchased this get in touch with me with proof of purchase and I will send you the updated version.
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