I’ve never tracked my net worth before. And since my mom just sent out a Christmas letter telling all of our relatives about this blog, you won’t be seeing any specific numbers here today. :)

What I will tell you is that for the first time in our married life, my husband and I are starting the year with a positive net worth. Our debt repayment efforts last year paid off, and our assets are now more than our liabilities. How is this possible, considering the rough year 2007 was for us financially?

First of all, we don’t own our home. We have no mortgage, which is a big help in boosting our net worth. And truthfully, in our area, considering what houses cost and what we’re paying for rent, buying a house wouldn’t be a smart financial move at the moment. It would break our budget, and we will be able to accomplish our other financial goals much more quickly by continuing to rent. I do hope to buy a house someday, but now isn’t the time.

Second, we own our cars outright. Another big source of debt that most people have is a good sized car loan. Since we don’t have one, it lowers our debt to asset ratio.

That leaves only our credit card and our student loan as liabilities. Our credit card will be paid off by the end of the year. My original goal was to have all of our debt paid off by June, but that is clearly not going to happen. I’d like to see our student loan debt gone by 2010.

We don’t have much debt, but we don’t have many assets either. We have a small amount in savings and a small IRA. But the two combined are larger than our debts, so I’m pleased with that.

Being new to figuring my net worth, I’m going to set a small goal of doubling our net worth by next year. That goal should be easy to reach. While it’s tempting to get discouraged comparing my small net worth to the larger net worth of other people, I think it’s important to focus on improving my own situation. As long as I’m moving forward and not backward, I will be happy.

For other great posts on net worth, check out the following blogs: