Comments on: Why Tracking Your Net Worth is Important

By: J. Money

J. Money — Sun, 28 May 2017 18:44:26 +0000

In reply to Chris. True about death stuff!

By: Chris

Chris — Fri, 26 May 2017 18:54:23 +0000

I’ve just recently started tracking my net worth. I think it’s a great way to accurately determine your financial aptitude. Love it when your net worth stays the same when paying down principal on a mortgage. I would love to recover the interest too, but I can’t have everything I guess, haha.
Also, I don’t mean to get too dark here, but when you die, all your assets stand good to cover all your liabilities. And then your heirs get the rest – if it’s counted that way after death, why wouldn’t you count it like that now?
Great informative post. Thanks.

By: Aury (Thunderdrake)

Aury (Thunderdrake) — Mon, 31 May 2010 19:35:57 +0000

I always found net work to be a rather fickle way to determine someone’s personal financial value. It’s a yardstick in a way, but when you take into account expenses going out, things like that, using it as a way to measure one’s financial strength is a little bit finicky.

I always found the monthly or annual income statement to be a much healthier yardstick for that. :P

By: J. Money

J. Money — Mon, 31 May 2010 16:56:40 +0000

It really is a GREAT snapshot of your finances. I can’t tell you how comfortable it is just *knowing* where you are financially every month – even if that’s up $100k or down $100k. Once you KNOW exactly what’s up and can track it consistently, you’ll subconsciously start working on improving it every month. Kinda like a challenge to yourself ;) So keep on tracking it guys!!! And if you aren’t yet, time to get on it.

By: finallyettingtoeven.com

finallyettingtoeven.com — Thu, 27 May 2010 19:09:27 +0000

If you track it and track it often hopefully you can watch the numbers slowly rise. It makes all the small sacrifices seem worth it and you feel like you have something ‘tangible’ to work for (even if it is a little piece of paper or a computer screen, one day you can convert it all into a real chunk of cash)…

By: Deacon Bradley

Deacon Bradley — Thu, 27 May 2010 14:54:04 +0000

Great advice about tracking your net worth. Like you said, it’s important to do this to keep an accurate picture of where you stand. For example, If you live in a $200K house it’s important your mental perspective always sees that number next to the outstanding mortgage balance.

When calculating your net worth I also think it’s important to exclude consumer purchases like home theater systems. The point being that when you spend $2K on a sweet TV you realize that expense and don’t pretend it’s just liquidity converted to an “asset.”

By: Ace @ aceofwealth.com

Ace @ aceofwealth.com — Wed, 26 May 2010 19:06:11 +0000

Another great way to use your net worth calculations is as a motivator, especially if you’re currently stuck in a lot of debt. Doing it for the first time can be really depressing, but stick to it! What’s important is the trend. As long as your net worth has an upward trend then you should continue to track your progress and use it as a motivational tool.

By: Everyday Tips

Everyday Tips — Wed, 26 May 2010 16:34:50 +0000

I just recently started calculating my net worth. With the spill in the stock market of late, I am afraid to calculate it again in a couple weeks. But I accept it will fluctuate as does the market and our bills. I have found that it actually has given us a little peace of mind because at least we know where we stand. If we see the market volatility is getting to be too much to bear, then we can move our assets into more conservative investments.