So, it wasn't as bad as I thought. It actually was BETTER than I thought. I tend to forget about our retirement account as an asset. Really.....it is G-man's account, but this is one of those what is his is mine situations. Now, per the regulations on the retirement account, we can only borrow what we have contributed (if we absolutely needed liquid asset). We have taken 2 loans against the account over time....one for closing costs on the house (which was paid off in 2006), and the current one we have $4475 left on.
Taking this into consideration, the numbers now look like this:
Now we have a negative net worth. On our way to a positive....but still...a bummer.
Which number am I supposed to use in figuring out net worth anyway???
So, I guess I will monitor this now. Not sure I want to do it monthly....maybe quarterly. Thoughts?
I saw you should use whichever number motivates you the most!
ReplyDeleteAccording to the way most people do it, the first number is the correct number. I doesn't really matter how much you can take out of the retirement account, it is still and asset. Just think how much that number will skyrocket when the debt is gone. I'm glad you were pleased with the number. You should continue to review your net worth, it's a quick measure of how you are handling money.
ReplyDelete@Everyday Tips - hmmm....not sure which one motivates me more. Seeing a positive net worth makes me want to hit a new "goal"...say 50k. Seeing a negative make me want to get to the positive!
ReplyDelete@Jeff - I wouldn't say I was pleased with the number. More like pleasantly surprised. The debt number is too high....the retirement too low. So we have more work to do.
Yes, the first number. It's not about how much you can borrow against retirement; it's about how much you have socked away.
ReplyDeleteIf you aren't too heavy into the negative, or are in the positive I say: WOW! :)
ReplyDeleteI'd honestly go with the first number. It's how much you have in assets, not what you can get.
CONGRATS :D