Tracking Your Net Worth
By Aaron Loh
Wealthy people understand the huge distinction between working income and net worth. Working income is important, but is only one of the four factors that determine your net worth. The four net worth factors are:
Income - working income and passive income Savings - if you don't keep any of your income, you will never create wealth Investments - from the money you saved, move to the next stage by investing it Simplification - simplify your lifestyle. What will it take for you to be happy financially?
Visit my blog (url below) to download your free net worth tracking sheet.
Most people know it's important to keep and organize all of your vital financial information. But knowing you should and knowing how are two different things!
Once you know the reasons for being very organized with your financial data (and keeping it all in a very safe place) I hope you will put organization on your net worth building to-do list (at or near the top).
You need to be able to see your financial strengths and weaknesses quickly. If you are an active investor, it's even more important that you do so. Time wasted on missing data and lost tracking information is money lost.
Also, keeping an accurate and up to date personal net worth statement (personal financial statement) can help you get loans or other financing more quickly.
It would be well worth the effort to be able to give your financial institutions information they need at a glance. And your needs for the same ability to query your net worth and data associated with accounts, investments, in and outgoing money, and other important data are very important.
Be sure and carefully consider all portions of your net worth. Often forgotten components of your net worth are listed below in a handy checklist to get your data system in order and on track.
- Cash on Hand and In Bank
- Notes Payable
- Marketable Securities
- Non-Marketable Securities
- Securities Held by Brokers
- Restricted or Control Stocks
- Partial Real Estate Interests
- Owned Real Estate
- Loans Receivable
- Life Insurance
- Other Assets
- Accounts Payable
- Amount Due to Brokers
- Unpaid Income
- Taxes
- Other Unpaid Taxes/Interest
- Other Debts
- Debt on Real Estate Equities
Make use of spread sheet software and programs (i.e. Quicken) to keep your net growth on track. The reports you can run are invaluable for seeing where you’ve been and how far you’ve come with your portfolios, mortgage, taxes, and other important information.
Aaron LohFounder and Director of Wealth Learning Internationalhttp://www.aaronloh.com
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home