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
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
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.
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.