Net Worth 101: Your Top Questions Answered | INVESTEDMOM
Money matters can be overwhelming, and it's easy to get caught up in the day-to-day expenses without taking a step back and looking at the bigger picture. To achieve true financial freedom, it's essential to track and increase your net worth. Your net worth is a critical metric that reflects your overall financial health and measures the total value of everything you own, minus the total value of everything you owe.
If you're not sure where to start when it comes to tracking and increasing your net worth, don't worry. I've put together a handy FAQ to answer some of the most common questions about net worth. From understanding what net worth is to tips for increasing it, I've got you covered. Whether you're just starting on your financial journey or looking to make some changes, this FAQ will provide valuable insights and practical advice to help you achieve your financial goals.
RELATED Reading: Your Net Worth Matters More Than You Think: Here's How to Make It Work for You
So, if you're ready to take control of your finances and start working towards living an unrestricted life, read on to learn more about net worth.
Net Worth 101 FAQ:
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A: Net worth is the total value of everything you own, minus the total value of everything you owe. It's a crucial metric for measuring your overall financial health.
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A: Net worth matters because it's a key factor in achieving financial freedom. By increasing your net worth, you're building wealth and paving the way for a comfortable retirement, the freedom to travel and explore new opportunities, and the ability to live your life on your own terms.
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A: You can increase your net worth by paying off debt, saving and investing your money, finding ways to increase your income, and reducing your expenses.
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A: There are many tools and resources available to help you track your net worth, including online calculators, budgeting apps, and spreadsheets. Choose a method that works best for you and make sure to update it regularly. Keep reading to learn about the 5 Top Tools for Tracking Your Net Worth.
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A: The ideal net worth varies based on factors like age, income, and lifestyle. However, as a general rule of thumb, experts recommend aiming for a net worth equal to at least 10 times your annual income.
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A: You should review your net worth at least once a year, and ideally more often than that. like to check in on mine quarterly. Every 3 months I have a money date with myself. Updating my net worth tracker is just so rewarding! This will help you see how your financial situation is changing over time and make adjustments as needed.
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A: To get started with improving your net worth, focus on the practical steps outlined in this article, including paying off debt, saving and investing your money, finding ways to increase your income, and reducing your expenses. Start small and build from there, and don't be afraid to seek out help or resources if you need it. You can also get access to my free Mini-Course which goes through the 11 Wealth building steps to financial feeedom.
FREE Mini-Course: Learn more
5 Top Tools for Tracking Your Net Worth
Budgeting Apps, Spreadsheets, and More! I researched the best tools for tracking your net worth. Here are a few of my suggestions:
Mint: Mint is a popular budgeting app that allows you to link your bank accounts, credit cards, and investment accounts in one place. It automatically tracks your spending and investments, and you can also use it to track your net worth over time.
Personal Capital: Personal Capital is a free financial management tool that helps you track your net worth and investments. It allows you to link your bank accounts, investment accounts, and retirement accounts and tracks your net worth automatically.
Excel: If you prefer to track your net worth using a spreadsheet, Excel is a great option. There are many free templates available online that you can use to create your own custom net worth tracker.
Google Sheets: Google Sheets is another free spreadsheet tool that you can use to track your net worth. You can access it from anywhere, and it also has many free templates available online.
Net Worth Tracker: Net Worth Tracker is a free online tool that helps you track your net worth over time. It's easy to use and allows you to input all of your assets and liabilities to get a snapshot of your net worth at any given time.
These are just a few examples of the many tools and resources available to help you track your net worth. Choose a tool that works best for you and your financial goals, and make sure to update it regularly to see how your net worth is changing over time.
What’s next?
Ok! You should now have a better understanding of what net worth is, why it matters, and how to improve it. Don't let your finances hold you back – take control of your net worth today and start working towards a brighter financial future. You are destined to live an unrestricted life!
Join the Wealth Builders Academy Membership and get access to a community of people on the same journey, learning how to become financially free and live an unrestricted life!
Stay Invested xx
Meet the Author:
Inge was born and raised in Cape Town, South Africa, and moved to Canada in 2010 looking for a better life. She always had an entrepreneurial spirit and started her first side hustle when she was 9 years old – selling fudge at school during lunch breaks.
It wasn’t until much later that she realized that saving isn’t enough to get ahead. She was always very interested in real estate, but saving up for a down payment was grueling and slow, and the demands of life kept getting in the way.
She started investing in herself and upgrading her skills while learning how to invest. She quickly became debt free and compounded her money at a staggering rate.
It wasn’t until she became a coach that she realized how significant an impact she can make in people’s lives by sharing her journey, learnings, and processes.
So here she is, advocating for everyone who is invested and wants to build their wealth, especially the mommas!