Each month I post our latest Net Worth. You can find all of them on this page. I have been tracking our net worth since January 2015, using the combination of YNAB, Personal Capital and a small Excel table.
Net Worth – what’s that? It’s really simple: all your assets minus all your liabilities. It’s that simple. Let’s take an example:
If you have $1,000 sitting in you bank, and you have $250 in credit card debt, your total Net Worth would be $1,000 – $250 = $750 I told you, it’s really simple.
Why is that important? Before you create a path, before you build a road to your destination, you have to understand where you are. Without knowing that you will end up exactly in nowhere. Without knowing and understanding your net worth you will not be able to create wealth and achieve your financial goals.