I can’t wait to share this with you today, so let’s get right to it.
Last week, we discussed the importance of tracking your net worth and you took a stab in the dark at it with your best guess numbers.
But, TODAY, I am going to share with you my super simple net worth tracking system. It’s in excel, but don’t be scarrred. I gotchu.
If you are already a numbers geek, or you know your way around a computer, you will catch right on to this. It’s simple and easy for a reason – I want to make sure that it is accessible and doable for everyone. I don’t want for this to be a taxing, time consuming chore. I want it to be something easy that you look forward to and something that can be done a couple of times a year within 15 minutes to half an hour.
Setup a spreadsheet to track your net worth. Or use mine. All the heavy lifting is done for you.
What you own – what you owe = Net Worth.
Tracking your net worth will help you to see and appreciate your progress over the months and years.
This is important because our financial lives are scattered throughout so many different documents, bills, and statements it is hard to have a grasp on where we really stand.
Check out the the sample made-up numbers below. I plugged in some average statistical numbers below and made assumptions for where this case study would be in about 7 months of progress.
The Plus/Minus column is a simple function Column B – Column E = Column F
Assets & Liabilities are totaled at the end of the sections.
ASSETS – LIABILITIES = NET WORTH
So now that you have seen a sample and you are ready to set up your own.
Save in your Download files and place a copy in your documents directory. Create a Finance directory if you don’t already have one, then create a sub-directory called ORIGINALS. Make this copy read-only so that you can refer back to it as needed.
Save another copy in your finance directory (making sure this is not ready-only).
From there, you can replace Partner 1 with Your Name and Partner 2 with your Spouse’s name, or right click and remove the row if you are single.
Name your labels as descriptively as you need to to suite you and so that you know exactly where to find it – Joint checking account is fine if that’s what you call it, or Wells Fargo checking, US BANK savings, CAPTIOL ONE 360 savings buckets, etc.
For today, just set the file up. Make it your own, personalize it with your name/names, to fit your unique scenarios. Next week we can fill in the numbers.
Questions/feedback? Please email me! I want for this to be an awesome resource for you.
Want to share with a friend? That is amazing! But can you do me a favor, and send them a link, so they can get their own copy? I want to get in touch with people and for them to know where to find me if they are looking for more resources.
ACTIONABLE STEP: Download my FREE net worth tracker and shoot me an email to tell me what you think. I love feedback , answering your questions, and helping get you on track. For today, just set the file up. Make it your own. Next week we can fill in the numbers.
CAN’T BEAR TO GO IT ALONE? The first 5 people to send me an email at firstname.lastname@example.org will receive a free 15 minute personal financial coaching session via skype and we will walk through your scenarios together.
What does that look like? I run the excel spreadsheet template, ask you to look up your numbers in a conversational manner and by the time we are done – you have a completed spreadsheet set up for life. Just because I love ya and I want good things for you.
Let’s get to it,