Finally found the time to sit down and do a proper calculation of the net worth. I will be aiming to update it monthly going forward in order to properly track the progress of this financial independence barometer.
It’s actually quite a healthy exercise, to be so specific about your own personal net worth, and try to lock the whole thing down as a balance sheet. Also a bit emotionally cold 🥶, simply reducing your entire life into a single number.
I think every one has a rough number in the back of their head, and so did I, but interestingly putting the pen on paper actually gives some additional insights.
Hopefully this methodological approach and tracking will help steer me towards my goal, and keep me on track.
Another reason for me doing this blog about a topic like personal finances and financial independence is that I think in general we are way too uncomfortable talking about finance, wealth, pay levels and so on. Many of these topics are simply taboo, both in society and families. Being an economist I think that is weird. How else are we going to learn and gain insights, and how are we going to inform and educate the next generations. They won’t all spend 5 years studying Econ at uni.
You can find my/our family’s balance sheet below, and see how we are setup for the future.
Accounting principle is kind of a mix between assets recognized at market value, book value, with and without depreciations, and a couple of estimations. I have taken an artistic approach to that.
For information, I included the value of our kids assets as well. Will do an extended blog post on this topic at a later stage.
All in all, when I look at our personal balance sheet, I think the biggest unanswered question I am struggling with is – should we leverage it some more? Is it too conservative?
Ps, all figures are in DKK which converts to USD at 6.70DKK/1USD currently.
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