When you see the net worth tracking bandwagon, you will see me on it, drinking the net worth tracking Kool-Aid. I love net worth tracking because it gets you out of the weeds of the daily spending and allows you to see the big picture which is so helpful and motivating. For the last several months I’ve been preaching to anyone who will listen about how great tracking has been and how they should be tracking theirs too. One of the most profound responses I’ve gotten yet is what my brother told me today,
“I’ve never had a net worth worth tracking.”
First off, having a net worth worth tracking is a great goal all by itself.
Secondly, how relatable is that? There have been times when I’ve felt like I wasn’t making a lot of progress and that my net worth wasn’t impressive, to say the least. I know a lot of people who never even add up their credit card debt, nevermind calculating the total of their assets less their liabilities.
Facing the hard numbers is the only way to really know what areas you could improve in and what areas you are slaying. Tracking the numbers on a regular basis, whether monthly, quarterly, semiannually or annually, is a great way to see your progress and stay in touch with your money.
If your goal is to improve your finances you have to know where you are at currently and where you want to go. For example, you probably wouldn’t just run around the Salt Lake City airport, hoping to run past your terminal. You’d find the airport terminal map, find the “YOU ARE HERE” sticker, find your plane’s terminal and then plot a route. So don’t run around hoping you’ll run past your financial goals. Calculate the “YOUR MONEY IS HERE” number and it will be much easier to devise your financial strategy.