The Power of Monitoring Your Rising Net Worth

Do you know your current net worth? Simply put, it’s the total value of what you own minus what you owe. Assessing your net worth annually provides an important benchmark for overall financial health and wealth building progress.

I analyze my net worth each January to quantify my position at the start of a new year. I tally cash accounts, retirement balances, home equity, and any other assets. Then I subtract outstanding debts like my mortgage, student loans, credit cards or car loans.

The first few years I calculated this; my net worth was discouragingly small. But seeing that number motivated me to pay off loans faster, invest more diligently, and curb unnecessary spending.

Fast forward several years and I’m now thrilled to see the exponential growth as compounding interest and continued contributions to investment accounts accumulate. Hitting milestones like surpassing $100k, even $200k net worth felt like monumental financial achievements.

Monitoring your net worth over time provides accountability, showing in stark numbers whether your financial behaviors lead to expansion or contraction. It guides your priorities for the coming year as well.

If you have major outstanding debts, focusing on paying those down more aggressively before accelerating investments may make sense. If you have available funds but low savings, dedicating more to retirement accounts or other assets could be wise.

I enjoy calculating my net worth annually because it reassures me that disciplined saving, smart investments, and achieving major money milestones will help me reach financial independence. The growth over time keeps me motivated to stay intentional with spending and contributions.

Give yourself an annual financial check-up and understand exactly where you stand by tabulating your net worth. Don’t get discouraged if the number disappoints – instead make it the starting line for future growth. Monitoring your progress will help you reach your money goals! Sign up for our newsletter today!

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Leon is not your typical financial advisor. Through his unique blend of experience as a military veteran and former College Professor, he has developed a strength for helping people explore the endless possibilities of their financial future. Leon understands that true financial freedom isn't just about having enough money to retire comfortably, it's about discovering your hopes, dreams, and aspirations and aligning them with a solid financial plan.One of Leon's greatest strengths is his ability to advise people on the best way to use the assets they have accumulated for retirement. He knows that everyone's financial situation is different, and he has developed a proven strategy that helps people achieve their financial goals. Leon's approach is both personal and professional, and he takes the time to get to know his clients and their unique needs.Leon's background in the military and as a College Professor has given him a deep understanding of the financial challenges that people face. As a military veteran, he managed entitlements, pay, and allowances and his job was crucial to ensuring that Marines received the correct entitlements. As a College Professor, he taught thousands of adult learners about finance, portfolio analysis, and debt management. Leon's knowledge and experience have made him a trusted advisor to many, and he is dedicated to helping people achieve financial freedom.
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