What comes to your mind when you hear people discuss their net worth? I guess you may at some point think that they are the wealthiest people so far! But is this true? I say NO! Net worth is just a mathematical approach to your finances, regardless of whether you feel rich or poor.
Your net worth should be the topmost aspect of consideration in financial management because it indicates your financial stand. Therefore, using or developing a net worth tracking system is essential in your finance management.
Because of this reason, there is a personal finance management software with net worth tracker features to help you review your assets and liabilities. This article will guide you on how to use the net worth tracker software, but before that, you can look at the benefits of tracking your net worth.
Benefits of tracking your net worth
Monitoring your net worth is far much different from following your budget. A budget often helps one follow a specific financial path to reach the aims and objectives, whereas net worth indicates your position in terms of those goals.
In other words, net worth shows your accurate financial picture. Thus, a person with a higher net worth is more likely to have a lot of money for their retirement than those with a lower net worth.
Tracking your net worth helps you to review whether your finances are in order or not. It will motivate you to put more effort and look for more money to achieve your goals, especially if your net worth is not in line with your goals.
How to track your net worth
The first step in tracking your net worth is knowing all your financials, just like you would before acquiring a mortgage. Then, have a record of all your assets. The assets include any business you own, money for investments, real estate, jewelry, and other collectibles. You should also have a record of all your liabilities. Liabilities include mortgages, loans as well as credit card debt.
Sum up all your assets and get the resulting monetary value. Feed the information into the software. Sum up all your liabilities, get the monetary value, and feed the information into the software. Set the tracker to start an automatic calculation, after which it will display the result of your net worth. The result is the difference between assets and liabilities.
Watching your results, whether positive or negative, is very important since it will help you focus.
Net worth tracker apps
1. Prillionaires App
The Prillionaires App is the most accessible and most sophisticated online wealth management platform available. Thanks to its excellent interface and net worth tracker, assets, and liabilities can be monitored easily and accurately across borders.
2. Personal Capital
Personal capital is a powerful app that works after linking it with all your financials. It also gives a complete view of your net worth. You can link it with: credit cards, your investment, bank accounts, mortgage, and loans.
Other apps include: PocketSmith, YNAB, and Facet Wealth
Conclusion
Net worth trackers have essential benefits for reviewing your assets and liabilities. Consider following the above steps while using the tracker to ensure you get the most relevant results. It would be best if you have one today to enjoy this instant net worth monitoring system.
