#Wealth tracker excel download
If you’re a spreadsheet junkie (like me nerd emoji) you can download this net worth tracker I created… for free. Technically, every payment you make towards your debt is increasing your net worth so tracking this number becomes increasingly exciting over time! If you’re in debt, tracking the percent in which your net worth changes each month can also be a valuable metric. How simple was that?Īfter finding our way out of debt and shifting our focus to financial independence, I held off calculating our net worth for a while feeling as if it were an overwhelming topic reserved only for rich people, but I couldn’t have been more wrong.ĭetermining our net worth gave us a true starting point and a more reliable way to measure our financial growth over time. You’ve officially calculated your net worth. Next, add up your liabilities and subtract the total from the asset total. To determine your net worth, first, add up your assets. This list will include anything you owe money on and can include (but is not limited to): If they are not then your net worth is negative. Simply put, if your assets are greater than your liabilities you have a positive net worth. So, your net worth provides you with a complete picture of your finances as a whole instead of a narrow view, which may focus on just one part of the pie. Personally, we have a positive net worth – despite our $200k mortgage – due to our retirement assets. While that may ring true in many situations, it completely depends on the number of assets you have. It’s a common misperception that just because you are in debt you have a negative net worth. Each financial decision you make will effectively impact your net worth – either positively or negatively. What Does Net Worth Mean?Īs mentioned above, net worth is essentially the difference between your assets and liabilities (money you owe).
Tracking your net worth on a monthly or quarterly basis can also help you understand how your financial systems are performing for you and help you revise your strategies based on your current financial goals. This one specific number is a great indicator of how your finances are changing and growing over time. Another great practice that can be highly motivating is tracking your net worth. Visual trackers are a great way to keep yourself moving while on a debt-free journey. Additionally, consistently tracking your net worth will provide you with a solid measurement of your progress on the path to financial freedom.Īre you currently working to improve your finances in some way? Maybe you’ve had a rock-bottom moment and decided it was time to make a change, financially speaking. Net worth gives you a clear picture of your current financial situation. ROBERT KIYOSAKI Why You Should Track Your Net Worth Your mind, more than your actions, determines your net worth.
#Wealth tracker excel how to
Let’s dive into how to calculate and track your net worth and * spoiler alert* I have a free net worth tracker for you to download too. Don’t worry if you don’t know how to determine your net worth. How are you determining the state of your finances? By the house you live in or the car you drive? By the amount of your income? Did you know none of those things are a good indicator of wealth? The true indicator of wealth is your net worth.