All Entries in the "Net Worth" Category

Running on Empty

If you are like us, that is the status of your emergency fund. Empty. Nada. Zippo. Verrrry low.

One of our financial goals this year is to build this fund up. Our first step in doing this was to determine our Net Worth. Net Worth is everything you own minus everything you have, but don’t own (e.g. your debt).

I have created a simple excel spreadsheet for calculating your Net Worth. If you would like a copy, let me know in the comments and I will email you it.

The goal is to
1) slowly build on your Net Worth every year, and
2) have three months worth of living expenses readily available.

Since I have not had any financial emergencies in my life thus far, knock on our new Prius, I have not been very diligent about keeping up this fund. I needed that $3500 row boat, we had to have, the honeymoon in Italy, we couldn’t do without, the addition on the house. So every time we are not broke, we make ourselves broke.

And it is fun, and I wouldn’t have it any other way.

But, alas, we are back to Square One on the Emergency Fund.

• The Emergency Fund Rule of Thumb Most financial experts advise that you should have 3-6 months worth of living expenses saved for emergencies. This emergency fund is meant to help you...
• The Basics of An Emergency Fund And Why You Need One If you do not have an emergency fund, you’ll want to work on getting one set up.  An emergency fund is just that - it...
• Common financial mistakes series, part five Mistake #5: Not having an emergency fund. So many times it seems like just when we find ourselves catching up, an unexpected expense or emergency...