JW’s Financial Coaching Podcast Lesson #96-The 5 Ways Tracking My Net Worth Helps My Finances

Play
  • 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

The JW’s Financial Coaching Podcast_96

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:

  1. Gives us an idea of where we stand financially
  2. It’s a snapshot of what we did for the month
  3. Great reminder of where we’ve been
  4. Great reminder of where we’re going
  5. Motivates me to continue doing what I’m doing

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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:

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