Saturday, January 5, 2008

Track Your Money and Face Reality

A lot of people think they are better off financially than they really are. A good way to come face to face with your finances is to use a website I found to track your net worth month to month. NetWorthIQ is a great website that allows you to put down all your assets and liabilities into a easy to use table and gives you a break down of your total net worth and lets you track how well you are doing from month to month.

When you actually sit down for 5 minutes and input the numbers, you can take a step back an reevaluate what you are doing well at and what you need to work on. Personally, I keep it pretty simple. I try to make sure my net worth increases each month no matter what. I know its not possible to do every single month because of large purchases and the ups and downs of the stock market, but I do think it is a pretty good goal to have and it is usually a easily obtainable goal as long as you use some discipline. So go ahead and start tracking your net worth today.

4 comments:

ChampDog said...

I will not feel that comfortable to expose my financial status in that website. Can this tool be used in offline?

Derek said...

The website is nothing extravagant. If you would like to set up something similar up off line (I would suggest using Microsoft Excel) you might want to setup a fake account with NetWorthIQ and just see what categories that you need to track your net worth. Then simply make an excel spreadsheet and pick one day every month(I suggest the 1st of every month) that you input your current numbers. That way no one else will see what your numbers but you can still track your net worth.

ChampDog said...

Yes, so far excel is still my favorite. :)

Ryan Williams said...

Thanks for the post and glad to hear you like the site. I agree, using Excel is a good alternative for net worth tracking. I'll just note that you can keep your NetworthIQ profile private and still take advantage of the community features and comparison report, as well as get a nice graphical picture of your net worth trend.