- Why I track my net worth on a monthly basis
- Can't move forward until you know where you stand
- Shows where we've been and where we're going
- How to calculate your net worth
- Quote of the lesson from Ralph Waldo Emerson
Wikipedia defines the term net worth as is the total assets minus total outside liabilities of an individual. I've talked about net worth before but today I'm focusing on the ways that tracking our family's net worth has improved our finances.
I don't think you need to track your net worth each month, but it is definitely something I would do at least once a year. Tracking my family's net worth for the past 8 years has enabled us to do the following:
- Gives us an idea of where we stand financially
- It's a snapshot of what we did for the month
- Great reminder of where we've been
- Great reminder of where we're going
- Motivates me to continue doing what I'm doing
As mentioned on the show, if you want a basic template to keep track of your net worth please download it here.
Today's quote of the lesson is brought to you by my new book A Tale of Two Houses
"Shallow men believe in luck. Strong men believe in cause and effect.” – Ralph Waldo Emerson
As a followup here is some additional material I've done on finances and luck:
- How is your return on luck?
- Is building wealth about being lucky?
- Do you have the power to control your finances?
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