Are You Tracking Your Budget, Cash Flow, and Net Worth?

Posted: January 7, 2010 in Business, Money, Personal
Tags: , , ,

Net worth, in its simplest sense, is assets less liabilities. In my opinion, it is the single-most important financial measure for us all to track (it gets the edge over cash flow since cash flow could be viewed as a subset and/or feeding into net worth). Net worth tells you whether or not your wealth is increasing and by how much. It’s an accurate and (unfortunately in bad times) ruthless measure of how you’re doing in growing your wealth.

There are different ways to track your net worth, but which you choose doesn’t really matter. As long as you’re consistent, you’ll be able to determine if what you’re doing is helping to grow your wealth or not. As such, tracking your net worth on some sort of regular schedule is a must for anyone serious about decreasing debt and increasing wealth. [read]

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