Retirement Answer Man Episode 2 The Importance of Tracking Your Net Worth
In episode 2 Roger Whitney talks about the importance tracking your net worth, how you can use it to make smarter financial decisions and rethinking your perspective about the purpose of investing.
PLAN WELL Segment
Your net worth statement is an essential tool for making smarter decisions. Your net worth statement:
- gives you your entire financial picture in one place
- equals the sum of all of your financial decisions over time
- allows you to identify risk and opportunities in your financial life
- is a much better tool to track your financial progress over time than your investment accounts
You should update your new worth statement every six months and use as part of your process for making big financial decisions. INVEST WISELY Segment
Over the last 25 years investing has been about "creating wealth."This has led to many people investing too aggressively.
Historically, the creation of wealth came from hard work, enterprise, creativity, disciplined spending and savings. The purpose of investing was to preserve and grow the wealth WE created. This perspective is important for you to consider.
It:
- keeps the focus on the true driver of wealth creation.....YOU
- may allow you to invest less aggressively
- positions you better to invest more consistently over time