Do you know where you stand financially?Mar 11, 2021
One of the most fundamental exercises in personal finance is an annual calculation of household net worth.
Typically, in the summer following our household’s corporate year ends, I stop and reflect on how the fiscal year has been.
Did we thrive or just survive?
Are we getting ahead financially and closer to our dreams?
While the calculation of net worth during a credit application can be tedious, it is important to reflect on your current financial state. And doing it takes just a few minutes.
Like information we review in our practices, a single data point holds little value. It is the trend that matters.
So, with that, go ahead and document your net worth. It can be as complex as a spreadsheet or as simple as a sticky note on your office wall.
Next, set a reminder in your online calendar to prompt you to repeat the exercise annually.
Doing these simple steps every year can be one of the most powerful tools in helping you reach your financial goals.