Chapter 4Take Inventory of Your Numbers

August 2018 was the first time that I sat down to calculate my net worth. I had been on a debt‐free journey for over two years but was too scared to confront the number that would reveal my financial picture as a whole. I knew my net worth was in the negative, so I resorted to ignoring the number rather than facing it. I was more comfortable running a Google search for “what's [insert celebrity here]'s net worth?” than calculating my own.

But early that month I had publicly launched my social media account @zerobasedbudget. I had done so to: (i) document my debt‐free journey and (ii) simplify personal finance information for my community. I knew that if I was going to share my journey with others, including my loved ones, I had to understand my complete financial picture.

Net Worth

To quote Drake's 2018 hit, “In My Feelings,” “What's your net‐net‐net worth?”

Your net worth is a calculation that measures your liabilities (what you owe) against your assets (what you own). It is an excellent way to measure your financial progress because it provides a complete picture of your financial situation. Regardless of your age, how much you own or owe, or even your income, your net worth is the most important number to track on your financial freedom journey.