My Financial Net Worth?

Inspired by an article I recently read in the 10/29 issue of the NY Times, "What Women Want, Just Ask" I decided to start tracking my financial net worth. I was a little scared to see what the final number would amount to, but in the end I was pleasantly surprised.

At first I was a little confused by the what exactly the term entailed and how to calculate it, but after doing some online research and reading some other financial blogs, it's pretty simple: Assets-Liabilities= Finanical Net Worth. Many of the personal finance blogs, such as Windy City Blues, Open Wallet, and Crazy Money, I came across actually publicized their numbers, and keep a monthly tally, but I'm going to choose to keep mine private.

Working in the finance industry along with having a father that has preached "save for retirement" since the day I was old enough to understand what that phrase actually means, has taught me that we need to start saving when we are young! It's crazy when you read all the experts advice and look at the numbers out there. A recent CBS news article states, "assuming you are looking to retire at age 65 and earn an average income, by the time you are 40, you should have accumulated 4 to 6 times your annual pay in retirement savings and be saving 15 percent or more of your income in your 401(k)." Yikes...that is a scary figure, and although I probably do better than the average saver, it tells me that I need to put away a larger % of my pay check into my 401K plan!