167. How to Calculate Your Net Worth

Counting Your Coins Does Not Make You Scrooge McDuck

When I started calculating my net worth in 2019, I felt like a complete fraud. I had -$164,000 in student loan debt and I knew I would continue to have this debt until my student loan forgiveness period is completed in April 2025. Previously, I also assumed that my net worth would be negative until the loans were forgiven. This is where I was completely wrong.

As I started tracking I found that with my deliberate saving and investing my net worth was rapidly increasing DESPITE still having -164k in student loan debt. Inspired by the change, I started saving and investing even more and in Jun 2020 my net worth was positive for the first time.

Actual photo from June 13, 2020

The plan I had created for myself worked and it worked really well! I never admitted this out loud, but on that day I set an even more aggressive goal- to become a millionaire by the time my loans are forgiven.

To be honest, I’m not 100% sure I will reach this goal, but I have already received drastic life-changing benefits from the wealth I have. I already get to spend my time the way I want to and, because of that, I am happier and healthier than I’ve ever been.

Calculating your net worth does NOT make you Scrooge McDuck

Show Notes:

• Net Worth: What It Is and How to Calculate It by Investopedia

• Not an advertisement: Our favorite savings account- Capital One Performance 360 Savings

Community Time

AirHelp: Partner For This Episode
Check out our partner for this episode, AirHelp. AirHelp is a part of the Association of Passenger Rights Advocates (APRA) whose mission is to promote and protect passengers' rights. Click this link if you've had a cancelled or delayed flight as well as support our podcast: AirHelp Affiliate Link