I enjoyed reading the preview article and learning how others use the Net Worth IQ site to motivate, shame, cajole themselves towards better financial health. As always, the comments from the public are as interesting as the article. My comment, with typos and all, is below.
As someone who talked to Ron but declined to give my name, I find tracking my net worth a valuable tool. I don't generally compare myself (ourself since my net worth iq number is joint) to others, but instead compare myself to myself. On-line tracking tools are, for me, an outgrowth of Quicken which I also use. I find that tracking, lots of tracking, requires me to stay engaged with my finances, think about each dollar I spend and work to save more.In our 30s we have retired all debt, we have no credit card debt, no student loan debt, no car debt, etc., except our mortgage and the mortgages on our investment properties (which are rented and paying for themselves). We save a good chunk of money each month, both in our retirement accounts and in other savings vehicles. And we still live a good life that includes eating out, vacations, and shoes for me.
For me tracking and measuring my assets and debts on a monthly basis keeps me on track. Having to review a balance sheet each month, like a business person does or should, focuses on the fact that are household is a small business and we have to take care of ourselves.
I'm looking forward to reading the full magazine article this weekend.
5 comments:
i read the preview article and was wondering - how do you calculate your net worth if you are underwater in your mortgage? do you put your house as an asset at what you paid or what it is worth on zillow.com? i am not worried about losing it (yet) since i am employed and have an emergency fund.
I find your $100/month extra mortgage payment hard to understand. With a large mortgage and significant dollars going to other categories, I would have expected the extra mortgage payment to be either zero (especially with your low interest rate) or hundreds each month. Can you share how you settled on an average of $100/month extra payment?
http://finance.yahoo.com/banking-budgeting/article/109545/net-worth-obsession?mod=bb-debtmanagement ... the article is actually featured on the main yahoo page ... nice! prepare for more site traffic ;)
I think it's great that you think of/run your household as a small business. My husband and I are young entreprenuers and we feel the same way and are spreading the wealth message vs. toys/debt to our community.
Congratulations for grabbing trying to take control of your finances but you're still playing the game by the wrong set of rules. I highly suggest you spend $25 and purchase a book entitled "A Path to Financial Peace of Mind" by Dwayne Burnell. It will rock to the core everything you previously thought about money and will teach you to run your household business like a bank. Want your debt and house paid off? Bank like a bank. Want a secure tax-free retirement? Bank like a bank. If you're truly serious about your money, this book will be the greatest investment you will ever make. Call me if you'd like to discuss. Morgen @ 970.672.1091 Best of luck to you.
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