Many financial experts say that you should update your Net Worth Statement once a year or so. I update ours about once a month. Why? Because it’s fun!
Why is it fun? Because we paid off our credit cards last year and all the money that was going toward those cards is now helping us build our net worth. It’s amazing how things tend to build on each other. Instead of paying someone else for the use of their money, someone is paying us! In other words, we have reached the point where our money is helping us grow our net worth. Compounding is awesome! I love it!
No matter where you are on wealth-building road, you NEED to keep track of your net worth. It’s not hard. In fact, I even put together a general Excel spreadsheet called the Statement of Net Worth that you can download and put to use. There are tabs for each month for the remainder of the year. I even linked the cells from month to month so you don’t have to do a lot of repetitive work. If you change a number in a cell, the spreadsheets in the months AFTER that sheet will change too. You will have to manually enter any new categories that you might add.
The important thing is to get started now. I’m here to help if you need anything or have any questions.
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