Series · Lesson 17
Track Net Worth
Income is flow. Net worth shows what you have actually accumulated.
Key Principle
Income tells you what is flowing through your life; net worth shows what you have accumulated.
Track Assets
- Cash
- Retirement accounts
- Brokerage investments
- Real estate
- Business interests
- Other meaningful assets
Track Liabilities
- Credit cards
- Student loans
- Auto loans
- Mortgage
- Personal loans
What You Should Do
- Calculate net worth at least annually.
- Track savings rate.
- Track debt reduction.
- Track retirement progress.
- Compare your trajectory with your own goals, not someone else's balance sheet.
Common Mistakes
- Counting home value without mortgage debt.
- Ignoring liabilities.
- Using market value changes as a substitute for savings discipline.
Advisor’s Perspective
The annual balance-sheet review is one of the simplest ways to make financial progress visible.
Action Checklist
- Update assets
- Update liabilities
- Calculate net worth
- Compare year-over-year
- Set next milestone
This is Lesson 17 of the Your First Paycheck Education Series. Continue with Lesson 18: Build Your Personal Financial Operating System.
This article is for educational purposes and is not legal, tax, insurance, student-loan, or investment advice. Tax law, contribution limits, employer plans, and insurance terms change. Consult qualified professionals when implementing a plan. Su Bella Vida is not a bank, broker, CPA, or law firm. Read our terms & disclaimer.