Do You Track Your Net Worth?

FMF asks the question, and asks why you do/don’t and how often.  My opinion is that you can’t accurately track your financial progress as a whole without a grasp of how to measure your net worth.

Like him, I used to look at mine pretty regularly, but now I check it once, maybe twice a month.  With the market of late, I’ve become almost afraid to.  I use Yodlee to keep everything in one place, and here’s what I look for as a barometer:

  • Is a large one-day or other short-term market swing significantly affecting my net worth?  If so, I try to factor that into my observations.  Just a simple check of my portfolio balances.
  • Are my floor and ceiling both rising? —  There are always fluctuations during the pay cycles where your bank accounts crest and trough.  I feel good if both the low-end and high-end of my net worth’s range are inching higher every month.  Hell, just paying the mortgage should give you a slight upward tickas you build equity.
  • Any recent big expenses?:  I just paid the car insurance, which always suppresses you a bit in the short term.  I don’t make many big-ticket purchases, but a car repair or like-sized expense should be taken into consideration.

Leave a comment

Filed under finance

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s