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How Tracking Your Net Worth Can Make You Wealthy

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Personal Finance

March 1, 2019

How Tracking Your Net Worth Can Make You Wealthy

‍Do you want to be a millionaire or are you actively setting yourself up to become one in the future?

Wanting something is one thing but planning and going after it is an entirely different process. One way to start focusing on becoming a millionaire is to start tracking your net worth every single month.

Tracking your net worth takes less than ten minutes per month but can have a dramatic impact on helping you reach the two-comma club.

‍Why Most People Don’t Achieve Financial Freedom

‍According to CNBC, 61% of Americans wouldn’t be able to afford a $1,000 accident without putting it on their credit card if something happened tomorrow. That’s right…6 out of 10 people in the United States don’t have $1,000 saved.

Americans aren’t much better at saving for retirement either. According to Business Insider, “The median net worth of all Americans is $68,828. The median net worth excluding equity is $16,942 – which means equity is 75.39% of total net worth.”

‍This happens for two reasons: lack of goal setting and lack of accountability.

‍You need to have a goal for your future. Whether it’s a certain number or just a type of lifestyle you want to lead in the future. Plus, humans need accountability and a plan for their money. Using a net worth tracker consistently can help you achieve both of those by focusing on your goals and staying accountable.

‍Common Excuses

‍Most people don’t track their net worth for a few reasons.

“Why should I track my net worth? It time-consuming and doubt it will matter.”
“I’m way too in debt to want to see exactly how much.”

It doesn’t matter if you are worth -$50,000 from student loan debt or worth $100 million dollars, everyone should track their net worth. Here’s why:

‍3 Reasons Why You Should Use a Net Worth Tracker

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1. Financial Progress

Human beings are goal-seeking organisms and need targets to measure and track their goals. Using a net worth tracker won’t make you a millionaire overnight but it will help you make progress on your financial goals.

If you use a net worth tracker every month it will become evident where you are overspending and what you can do to make progress toward your goals. You might notice trends of overspending on eating out, not saving for the future or mindlessly shopping online.

‍2. Increase Your Confidence

‍Do you think millionaires just got to the seven-figure status by luck?

No, they made a conscious effort to earn, save and repeat year after year! By using a net worth tracker consistently, it will create the discipline to make the right financial decisions on a daily basis.

Once you see that progress every month, it will inevitably see your confidence and your bank account increase.

‍3. Understand Your Finances With One Number

‍Most people tend to look at assets only when calculating their net worth. But if you have 200K in assets and 100K in student loan debt, it doesn’t give you an accurate picture of your finances.

‍Would you like to learn how to track your net worth and achieve your best financial future? Simply request a call from a Bayntree financial advisor today.

‍Bayntree Wealth Advisors, located in Phoenix and Scottsdale, Arizona, provides comprehensive financial planning and wealth management. The Bayntree team specializes in all aspects of financial health, including retirement planning, risk management, investment advice, tax strategies, estate planning and insurance.

Bayntree does not provide specific legal or tax advice. Please consult with your tax advisor or legal professional for guidance with your individual situation.

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