I am going to show you how to track your net worth for free on this post. If you’re like most of the people on earth, you’re always worried about finances. It’s a real concern as the cost of living seems to increase faster than your pay raises.
There are numerous articles discussing how older people are not prepared for retirement and how a really high percentage of people will have to work way past their retirement age just to keep putting food on the table.
This is a scary thought. Here is how you can take control of your future, just by starting to track your net worth for free. The good news is that it’s never too late to start getting your priorities straight and planning for the future.
How to track your net worth:
A good place to start is to actually figure out your net worth. This can help pinpoint where your money is going, specifically what you are spending your money on.
I’m guessing you think this would take a lot of time, time that you don’t have, or that you think it’s a hard thing to set up. You would be wrong on both counts. You may not even know what it means.
Net worth = Assets – Liabilities
Assets are things that you actually own that are of value. Examples are your retirement savings, your money in checking or savings accounts, your house value
Liabilities – debt owed that you still need to pay off. Examples would include student loans, credit card bills, mortgage balance, and auto loans
Case Study:
Assets:
Jerry has a house worth $250,000
Car worth $15,000
Savings and checking account balance: $2,500
Retirement account: $18,500
The total of all assets is $286,000
Liabilities:
Mortgage balance of $175,500
Car loan balance: $8,250
Credit cards debt: $4,350
The total of liabilities is $188,100
$286,000 (assets) – $188,100 (liabilities) = $97,900
how to track your net worth for free absolutely
Free net worth tracker from Personal Capital
Net worth is equal to $97,900
Track your net worth, absolutely free
What if l told you there was an easy way to track your net worth for free? All it takes is a few minutes to input your information.
Once stored, it gets updated automatically, syncing all your accounts without you having to lift a finger. Personal Capital is a financial management company that has a free net worth tracker that does it all.
Is it safe to track your net worth online?
Yes, it is. Personal Capital uses the latest encryption tools to make sure that your information is safe and can only be accessed by you.
Tracking net worth is not just for the rich. Yes, rich people use it, but everyone should have a good idea of their net worth for these reasons and more.
How to track your net worth and the reasons you should:
– It can serve as a wake-up call for you to buck up. You see exactly where your money goes. It might be dining out that’s draining your finances, seeing that in black and white can help with your budgeting.
– It can help shape your future. Once you track your net worth, you have a clear idea of what steps you need to take to reach your goals. Maybe you’re lagging behind with your desire to be a homeowner. You can work on your allocation of funds to make that dream a reality.
– It can stop frivolous spending. I had a really hard time with this. I had a weakness for handbags and spent an obscene amount on them. I had an idea but truly didn’t know just how much of a money drain it was till l saw it. Once l realized this. I knew l had to change because l wanted to retire earlier than normal. I started throwing that excess towards my mortgage balance. Learning to differentiate between wants versus needs really helps.
– It can save you money. Personal Capital has a free analyzer that can help you discover which particular funds and investment accounts are killing you with hidden fees. You can direct this money to your savings instead of their pockets.
– Free Retirement Planner. This can help you plan, manage and forecast your retirement savings in one place. Of course, if you choose to use their other services, you would pay management fees.
To get started with tracking your net worth, click this link for Personal Capital.
For at least 9 years, l had been using another net worth tracker, Mint. It was good, but Personal Capital offers more tools than that one did. I’m glad l made the switch.
You owe it to yourself to track and manage your net worth. Armed with this free tool, you will definitely be on the right track, and will be able to pass the knowledge on to the younger generation.
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how to track your net worth for free
Do you track your net worth? If so, has it been a blessing in your life? Please share.
Thank you for sharing this. So many people are clueless when it comes to personal finance and debt management. I hit a tough period some years ago and took the time to educate myself. I’m still learning.
Thanks for reading. Yeah.. I totally feel you on the rough period. I still find it painful to think about it. It gets harder and harder to let things slide, especially when there are so many resources to help. People have to stop being clueless.
Good information. I live that it seems we are being more intentional and learning how to build and have wealth. Not just stuff but improving our financial positions so we can improve for generations to come. Thank you for sharing! 💕
Thank you KenyaRae. You said it very well indeed. We have to be more intentional and stop blaming a crap load of reasons why we can’t build wealth. We need to start doing for ourselves, and not play victim all the time. There are plenty of resources in this day and age, unlike before the internet when we were all just fumbling in the dark. Our future and the future of generations are depending on us.
This is awesome, especially for someone like me. I’m seriously trying to be debt free within the next couple of years. Claiming it!
Good for you. This is truly a step in the right direction. I so wish there had been a tool this thorough for me back then. Mint was good, but this just has more, it has helped us. Claim it 🙂 and good luck, you can do it.
What a lovely post and thanks for sharing. It was only couple of weeks ago I was actually thinking about everything you have written in this post. It gets tricky and more difficult when life issues comes in the way. Moreover, most people just have enough to get by on daily basis therefore thinking so far ahead is not realistic. However, as you’ve mentioned, it is never to late to start.
Thank you for reading. It took me a while to wake up and spell the coffee. It does get tricky when life gets in the way, but we have to start somewhere, and this is a good place to start, getting the full picture of ones finances.
Awesome information. I work with people who are close to retirement and there are so many who did not prepare in advance. It is definitely scary.
It’s so sad when you see that. I remember having clients who couldn’t afford their maintenance medications because they were short on funds. Finances and your financial picture is really something that more people need to take control of.
Your blog gives me life. Thanks so much for the information.
Glad to hear that. Thanks a lot 🙂
This is so good to know but I’m scared as hell to find out! Sounds bad but it’s the truth. I know my finances are bad. I have got to get my life together! Thanks for sharing!
I was terrified of the truth as well, like ripping up a bandage. It does however let you start taking control of things 🙂 . Good luck, and it won’t be so bad.
Thank you SO much for sharing this. I have been doing my best to improve my finances but some things (net worth) I don’t know much about. Definitely saving this and sharing this among people I know. Shoutout to you!
Glad to hear it Courtney. You have to start somewhere and once you see it collectively, you start to see how the pie is divided and can make adjustments. It feels good to be going the right way, and once you set it.. it syncs itself and it does help. Thanks for sharing.
Such an important post! It is so important to kniw where you are financially so that you can make adjustments and improve.
Most definitely. In this day and age, nobody will do it for you. You gotta grab the bull by the horns so to speak 🙂 .
I want to get better with my money management. Glad technology is stepping in and making it a little more easier!
True. Everyone should get a grip on their finances. We really can’t count on anyone else these days. No excuses either with all the available technology like you say :-).
I want to try this and thank you for all your posts!
Thanks for reading. I hope you find it useful.
This is a great program and much better than my half attempt at writing and calculating things on paper. Our goal is to pay our house off in 5 years and this program is a great source for staying on track!
Wow! With the way time flies, 5 years will be here and gone in no time. You’re right, it’s a great way to keep track of all your financial assets. Great for checks and balances and definitely less nerve wrecking than manually doing it. Good luck with the mortgage payoff and thanks for the comment :-).