Please visit our Subscription page to learn how to receive blog posts through email, Twitter, Facebook and other social media.
Do you know your net worth? If you do not know or have not calculated yours in a while you might want to consider taking some time and calculating it. Your net worth is calculated simply as what you own (assets) minus what you owe (liabilities).
The reason why I encourage you to track your net worth is because it can be useful as a way to track your goals. After a few months of doing smart things with your money it is very motivating to see your net worth increase each month as a result! It can also be a good motivator for you to get your finances in order, as you might be shocked to realize how small your number is or that you actually have a negative net worth!
JW’s Financial Coaching has developed a simple net worth spreadsheet for you to track your net worth if you never have. It is a simple form to cover the basics. Feel free to modify it as you please. On the second tab of the spreadsheet there is a graph that will automatically populate once data is entered and you can see how the graph changes from month to month.
Calculating your net worth gives you a perspective of where you stand overall financially. If you are not calculating it monthly, quarterly, or at least annually, start this month as it can be quite an eye opener and could lead to some much needed conversation in your home about the current state of your finances. CNN Money has a nice net worth calculator that shows you where your net worth ranks amongst your age and income. But remember, that you do not want to be average, but instead become remarkable in dealing with your finances!