In order to keep track of my financial progress or lack of progress I have decided to calculate my net worth a few times a year.
My net worth as of 02/2/2017 is as follows.
Cash – $7043
IRA – $24,745
Roth IRA – $10,598
Solo 401k – $1041
Car/Stuff – $4000
Student Loan – $131,813
Credit Card – $2238
Net Worth = $-86,624
My net worth improved slightly since I last calculated it. This was mostly due to a strong month of FBA sales in December. My net worth should continue to improve over the next couple of months since I’m working full-time at my seasonal tax job. If I were to not count my student loan I would have a positive net worth of $45,189. I’m going to start tracking my net worth both with and without my student loan to see how much of a negative effect the student loan is having on my net worth.
I now have credit card debt in addition to the student loan debt. This was actually good debt though. I took a 0% balance transfer with a 2% transaction fee from one of my student loans. This allowed me to take advantage of a credit card deal and also buy more inventory for FBA. I’ve already made a good profit from making the balance transfer. I could pay it off now, but since it is at 0% I’m delaying that in case I find another profitable use for the money.
I’ve been using Personal Capital (affiliate link) to help track my net worth. It keeps track of all of my financial accounts and my student loan making it pretty easy to calculate my net worth each month. It is free to sign up. If you would like to sign up I’d appreciate you using my link. All blog income, including affiliate income, goes to paying down my student loan.