Net Worth Update – approaching $500k!

It’s about time I update my net worth again (last update). A lot has happened so far this year to help boost my net worth. It’s interesting how when you watch something like this frequently it may seem like little progress is being made, so I was pleasantly surprised to notice that since the start of the year, my net worth has increased by $47k, or about 10% to $492k in a period where my take-home pay has been about $45k.

Going forward, in addition to providing my net worth, I wanted to provide some additional context about what exactly makes up my net worth. As you can see below, a good portion is tied up in the value of my home. For the past several years we have been paying extra on our mortgage and have built up a good amount of equity on top of the large down payment we made. At our current pace, we will have the mortgage paid off in just under ten years, but are working on ways to make that happen much sooner.

You’ll probably also notice that we are getting really close to hitting the $500,000 net worth mark. I’ve certainly noticed too. Not that it will change anything (have you ever heard of a “half-millionaire”?), but it certainly is a threshold that will feel good psychologically to pass.

As you can see, determining net worth is pretty straightforward, especially when our mortgage is our only debt. What makes it even easier for me is using free tools like Mint.com. For my vehicles, I use the Kelly Blue Book value for private party sale and for my home I use the estimate from Zillow. I know some real estate professionals don’t care for Zillow, but the value seems very accurate given comparable sales I have seen happen in our neighborhood. When we first bought our house, it needed a lot of work, so Zillow may have been overestimating the value of our home for a bit. But with all the work that we’ve put into the house to get it up to par it now seems reasonable to assume that the Zillow price estimate is an accurate value (and a real estate agent friend of ours who knows our house and neighborhood well agrees).

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