Every year, around January 1, I do two exercises related to my finances: calculate my net worth, and review the prior year’s spending. I have been doing this for years–long before I met Mr. PiN–so I talk about my finances, though it has really been our finances for some time.
While it is certainly pleasant to see totals moving in the right direction, I find the most helpful aspect of the exercise is to reflect on where we are as a household, and consider next steps (not resolutions!).
This year, going through the finances is taking a bit longer than usual. I finished the net worth calculation early, but the spending review is taking much longer.
Instead of going through both topics at once, I will be splitting them up: this week, the net worth discussion; soon (hopefully next week) a review of our spending in 2021.
I won’t be giving exact numbers, per Mr. PiN’s request, but I hope that going through this exercise with me may be informative for you.
Continue reading “The Yearly Financial Check Up”