My hot tip: TRACK YOUR NET WORTH!


#1

My #1 tip is to always track your net worth.

I.E. add up all your assets (savings, investments, property), and then subtract your liabilities (debts, loans, etc). The number left is what you’re looking for!

Here’s 9 reasons it’s a game changer:

  1. It helps you know exactly where all your money is at any given moment of time

  2. It changes the way you think about money as you’re out there in the real world!

  3. You’re able to make more informed decisions quicker

  4. You better realize what’s in your control, and what’s not (cash flow vs stock returns)

  5. You become REALLY comfortable talking about money (perhaps even too comfortable when you catch yourself throwing numbers out loud to friends and it’s met with complete horror! Haha…)

  6. You become super confident over time, even if you’re in debt or have a negative net worth (because you’re working on it and have a plan vs just keeping your head in the sand)

  7. You can track future performance better, based on all the months/years of records you’ve collected

  8. You can easily see how well rounded your finances are or not

  9. And lastly, it only takes a handful of minutes to copy/paste every month. The #'s always change, but the calculations don’t.

So hopefully you’re tracking it!

PS: Here’s a list of 200+ of us bloggers who share it publicly online (something you do NOT have to do - what’s important is that you’re just tracking it!): http://rockstarfinance.com/blogger-net-worths/


#2

I’ve always tracked my income, spending, and budget, but I’ve never tracked my net worth. If it’s negative does that mean I should make it red on the ledger? :wink:


#3

@Nate It means it’s good you’re in these forums :slight_smile:


#4

Tracking your net worth lets you know if all the other thousands of decisions you are making with your money are paying off.


#5

I hear Personal Capital makes it super easy to track your net worth, too. Mmm, yummy Personal Capital!

– Steve


#7

@CaitFlanders doooo it!!!


#8

Net worth is the bomb. It’s the only number I track, other than my yearly saving percentage (highly correlated, I would say).


#9

I’m so happy I started tracking my networth. It’s helped validate my decisions. Also my financial status isnt a ball of unknown scariness anymore.


#10

I tracked it very loosely for years (rough number in my head) but started keeping much closer track when I knew I was close to FI.

I’ve been hesitant to publish the number on my own site, so I did it in a guest post @ InvestmentZen instead.


#11

I remember that post! I picked it up for Rockstar, yeah?


#12

Tracking my net worth has been a game changer! It’s like having a score card from month to month to tell me how I’m doing! I love posting and reading updates from others about it and learning what I did wrong or right to make it grow/shrink!

I’ve been tracking since 2010 and we’ve almost grown it by 5x! It’s been a fun thing to do to encourage myself to do good things with money!


#13

No, but I probably submitted it. :sunglasses: Better late than never?

I was pleasantly surprised this morning, though. Looks like another best traffic day ever for physicianonfire. Cheers!


#14

Tracking my net worth was my secret weapon to achieve financial independence. My annual budget even calculates my budgeted net worth each month so I can see how I’m doing compared to my plan. Budgeting it kept my eye on the prize.


#15

I have been tracking since I start working in 2006. I’ll admit I’m a big financial nerd.


#16

I’ve been tracking my net worth since January 2010. The most valuable part to me is that it pushes me to be a little bit better each month and it creates a record of past success. So I guess that’s actually two most valuable things …


#17

I agree - net worth is crucial to know - it keeps you on track. I’ve always been an open book about myself and my life but hesitant in sharing my net worth. I can’t figure out why :thinking:


#18

I have been a Quicken user for many years and I keep track of my net worth. My wife and I love seeing the ups and downs. Mainly the ups! I would love to start a blog and share with everyone. I need some practice in the writing department.


#19

Best way to practice writing is to start doing more of it! Start a blog and start writing about your adventures! If you find it fun, it should start flowing. If not, try a different medium like podcasting or youtube. It’s not as hard as you might think.


#20

I have some worries about publicly sharing my net worth. Especially since I’m blogging under my own name, but i’ve seen bloggers use their own name and have no shame posting massive income reports. I guess I worry about it alienating friends who find my blog but aren’t personal finance geeks?

I also wonder if it distracts from the message Id prefer to share of thinking critically about your finances and making your own decisions. Knowing that everyone is in a different spot, will sharing numbers just place focus on my comparative privilege and good fortune?

I love reading everybody else’s though and it feels like I’m intentionally staying on the bench instead of going into the game. It’s so much fun to see everybody’s growth and also easy to commiserate during the sub-optimal months too.


#21

I definitely don’t share my NW. TMI for my taste. I can see why others do and I think that’s great. Always inspiring.

I might not share it but I sure do track it. I know that doing so affects how I think about and behave around $$$.