Calculate Your Net Worth Quarterly

I believe you should calculate your personal net worth quarterly.  When you calculate your net worth, you are acknowledging where you are financially.  When you re-calculate it, you are coming face-to-face with how you are doing in improving your finances.

As you begin to track your net worth over time you will realize how you are progressing on achieving your financial goals.  You should keep a history of your net worth so you can see where you are going and where you may need to improve.  Are you paying off debt?  Are your investments increasing in value?  Is your real estate appreciating?  When you calculate your net worth you are doing a check up on yourself.  Numbers do not lie.

If your net worth is not increasing you should be able to quickly determine why.  It could be your income is too low so you aren’t able to gain traction on building wealth.  Perhaps your assets are going down in value.  Or, you are not paying down debt as you had planned.  No matter the reason, when you track your net worth over time you will start to see trends and you can change course when needed.

I believe your net worth is very telling of your financial story.  It will tell you quickly where you are today so you can make decisions on where you are going tomorrow.  So, track your net worth over time by calculating it quarterly.

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