If you are a Financial Independence/Early Retirement (FIRE) blogger, at some point early on you probably had to make the decision of whether to post your Net Worth for your readers to see.
A lot of factors go into whether or not you want to post your net worth for the world to see, such as, are you blogging anonymously, semi-anonymously or as yourself? Do you ever plan to reveal yourself if blogging anonymously? Etc.
Rockstar Finance has a great directory of bloggers who post their Net Worths.
As many of you already know, I do post my own Net Worth on the site for everyone to see.
I list at the beginning of every report the reasons I post them and those are all still valid to me. I do it for personal reasons, such as holding myself accountable to the goals I’ve set, as well as to go into detail to show others how exactly my net worth increases on a monthly basis and what actions I am taking with my finances.
Being anonymous, that decision was slightly easier as I understand the concerns such as privacy that many non-anonymous bloggers face.
I respect either decision a blogger makes. After all, good financial advice is good financial advice whether or not you know the net worth of the person saying it.
However, I’ve recently come to the conclusion that, for the most part, it doesn’t really matter if you share your Net Worth or not.
It doesn’t matter if you share your Net Worth
Ultimately, the vast majority of the bloggers out there in the FIRE sphere put a personal touch on their blog.
I love this about them as the personal touch truly makes each one unique and interesting!
However much they choose to reveal is of course up to them, but most often reveal a couple key details.
- When they will become Financially Independent, or plan to walk away from their job and “retire” (not getting into the debate of what that means!)
- Where they are at now (their age, if they are in debt/have loans or how many years away they are from FIRE)
- Their lifestyle (how much they save/spend)
With just these three details most readers can get a general sense of what your net worth actually is.
How is that?
Unless you are brand new here, you probably have heard of something called the 4% rule.
It basically just means that you need to have 25 times your annual expenses to become Financially Independent and never have to work again to support yourself.
The above details combined with the knowledge that just about everyone chasing FIRE generally follows the 4% rule can pretty much lead you to a range what their net worth is.
While the range may be bigger the farther away they are from Financial Independence, the closer they get to their FIRE date, the more certainty you would know where they are at.
Most people also reveal their lifestyle they live now or plan to live which gives you a sense of their planned spending.
For instance, at the low end, more frugal people are comfortable spending anywhere from $20K-$30K/year (would need a total net worth of $500,000-$750,000), moderate spenders from $30K-$50K/year (total new worth $750,000-$1,250,000) and at the higher end spending is $50K/year and up (net worth $1,250,000+). (Actual thresholds are up for debate!)
The closer you are to Financial Independence, the closer you are to one of these predetermined ranges that essentially everyone knows about.
What’s the point of this?
Essentially the point of this post is to highlight that for most bloggers, any consistent reader they have would be able to take a good stab at what your net worth is, especially as you get closer to Financial Independence or have already achieved it.
Once you get closer to those higher numbers, does it really even matter?
What I mean by that is; what’s the difference whether someone thinks your net worth is $1,000,000 or $1,250,000? $1,250,000 or $1,500,000?
Most people list privacy as the number one reason why they don’t share their net worth. But how private are you really being if you’re saying you are close to being Financially Independent or already are?
A majority of people target that $1,000,000+ number to give them a more comfortable early retirement lifestyle. To the average reader $1,000,000 is a whole lot of money that may take them a lifetime to accumulate.
I understand if you are further away from FI and not anonymous that you may want to keep your actual net worth hidden from family or friends that could be reading. That’s a big reason I chose to go anonymous myself.
But eventually you are going to hit your FI date and number in which case everyone will have that large number in mind for what your net worth is. Does that make sense?
Like I said earlier, I have no issues at all with people not sharing their net worth. That’s personal information that should only be definitively shared if you want it to be.
The only point I’m trying to make is that, if you keep up with blogging until you reach Financial Independence, everyone will end up knowing you’re most likely over a millionaire anyways!
What are your opinions on people sharing their net worth? Why do you or do you not share your net worth?