Every month I post my updated net worth for those that are interested in following my progress. I have been tracking my net worth online since January 2006. I enjoy compiling the numbers each month, and doing so keeps me motivated, focused, and accountable.
This month’s numbers…
An unimpressive month with the only gains being the exaggerated monthly gains of the real estate properties. This, as I have explained in the past, is an attempt to make up for the under appreciation of gains that I was including in the past. The value of my real estate holdings was increasing quicker than I was giving it credit for and this resulted in a large under valuing of my holdings. I was being conservative, but it turned out to be too conservative as real estate was booming for a while there. I am correcting it over time and with the slow down in real estate, I should reach closer to the true value this year.
I just follow Zillow property values for my net worth calculations. I have quite a few rentals, so I like to think the values average out to being close to accurate, but who knows?! I would like to see your property values increase to a more accurate value sooner. I find I can make better decisions with more accurate numbers.
Yeah, I do have a pretty good idea of the true value of the properties. I just decided I’d rather add it in to the net worth over time rather than a huge jump in one month.