For those readers who don’t know, net worth is the sum of your assets, less the sum of your liabilities (debts).  As an example, you have the following assets and liabilities:

Car: KBB Trade in value of $5,000

Checking Account: $600

Savings Account: $50

Credit Cards: $1,200

Auto Loan (for the car above): $5,100

Your net worth is ($5,000 + $600 + $50) - ($1,200 + $5,100) = $5,650 - $6,300 = $650 (red because it’s less than $0). 

Note that the Auto Loan is for the car listed, this illustrates equity, the difference between an asset’s value and how much is owed on it.  In this case, there is negative equity of $100 on the car, since more is owed than it is worth.

Now, back to NetworthIQ.  There are several things you can do at this site, most important of which is the ability to enter your assets and liabilities (along with an optional entry explaining changes that have occurred).  The other functions you have are: Posting/Answering Community Questions, blog through Journal entries, post Tips, send and receive private Messages, run a Comparison Report (more on this feature when I’ve had a chance to explore it) and, of course, Account Maintenance.

Not mentioned above is the NetworthIQ Badge:

Long term (2+ years):

1. Achieve a net worth of $250,000 by December 2012 (5 years)
2. Achieve easy liquid assets of $10,000 by December 2012 (5 years).  Note: Not originally posted, PLUS this is only a PORTION of my net worth goal.
3. Purchase a home by June 2010 (2.5 years)
4. Eliminate all current debt (credit cards, current auto loan,  and student loans) by December 2009 (2 years)

1. Eliminate credit card debt ($9352)
2. Eliminate other debt ($1043)
3. Increase Cash ($0 after upcoming bills to $1,000 after immediate bills)
4. Increase Retirement (to $3768 [was $6057 due to calculation error], not hard since I contribute 4% from my paycheck and my employer contributes 10% as long as I maintain 2%… WONDERFUL benefit).
5. Increase Stock Investments (to about $400)
6. Purchase some US Savings Bonds ($200)

Anticipated net worth by December 2008: ($29312)+$9352+$1043+$1000+$2200+$200+$200 = ($15317).  I know this is not a positive net worth, but a 48% increase in net worth.  I anticipate setting my 2009 goals for an end of year positive net worth, but that’s next year.

As I work toward my ultimate goal (to be announced in my next post), I will post my progress, links discovered and what I’ve learned.

I hope many people will visit my blog, Single Guy Money and other similar blogs as I progress.

My first link, discovered through Single Guy Money and Kiplinger, is NetworthIQ, which I will discuss a bit in my next post.