The major milestone occurred a few years ago when I realized that our net worth included retirement savings sufficient to support our annual spending indefinitely. We were financially independent.
I’m sure some of you track your stock portfolio daily or your house value on Zillow on occasion. When it comes down to it, if there’s only one single number you track at all, I believe it should be your net worth.
To figure out your total asset amount, add up the value of the following items and any money (cash) you have in the bank:– Stocks & Bonds– Investment Properties– Businesses– Cash
Once you’ve totaled up all your assets, you have to subtract out your liabilities. These are things you owe, such as debt on student loans, your mortgage, cars, rental properties, credit card debt, etc.
You can use either Google Sheets or Excel, but either way, all you have to do is come up with asset and liability columns. Then set it up so that your total net worth equals your assets – liabilities.