Our Liabilities Shrink as Net Worth Grows

This month our net worth has finally exceeded our liabilities. Now we all now net worth is the total value of property minus debts. Net worth itself is a tricky subject, a lot of people believe a household’s primary residence should not be included in the net worth calculation. It is certainly excluded when calculating millionaire status. In our case, assets can be broken down into four main categories: rental home, retirement accounts, primary residence, and non-retirement accounts. Any way you look, it’s nice to see the liabilities shrinking as our assets grow.

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