"The Best Way to Grow Net Worth Is to Track Net Worth"
How much are you worth? What is Net worth?
Your net worth is your assets minus your liabilities.
Your Net worth = All Your Assets - All Your Liabilities
The value of everything you own, such as crypto, real estate, art, businesses, stocks, and investments, versus everything you owe, such as student loans, credit card debt, and payday loans.
What should you consider as assets?
Assets are everything of value that you owe, such as cryptocurrencies, stocks, investments, real estate, art NFT, businesses, stocks, investments, retirement accounts, properties, etc.
What are your Liabilities?
Liabilities are your debts, things that cost you money, or the things you owe, such as loans, student loans, payday loans, credit card debts, mortgages, etc.
Why Net Worth Tracking is essential
- Your net worth shows an accurate picture of your financial situation.
For example, are you financially secure, borderline broke, deep in debt, is there a financial decision costing you huge financial loss? A picture of your net worth will show the state of your financial health, showing you where you are on your financial journey.
2. Improved Spending Habits
Understanding your current financial situation through your net worth can help you make better spending decisions if your spending habits negatively influence your finances. For example, a snapshot showing how your credit card debt negatively impacts your net worth is a good motivation to make better spending decisions.
3. Better saving and investment decisions
Understanding how your brokerage and investment accounts impact your net worth positively influences you to create more savings and investment opportunities.
4. Setting New Financial Goals
Tracking your net worth and seeing your progress motivates you to set new financial goals. It is even more fun to watch yourself achieve your goals as you track your progress on the go.
How to track your net worth
- Painstakingly create a list of all your assets and liabilities without leaving anything out
- Choose your tracking method
Methods of Tracking Net Worth
- Traditional Excel or Google Sheets method
While this method is free, there are just too many challenges with using excel or google sheet for net worth tracking, including:
- They are plain boring and requires people to be both analytical and technical to use it in net worth tracking, and not everyone is this way.
- Potential copy-paste errors make it extra easy to slip in mistakes.
- Accuracy is difficult, and the increased likelihood of data errors is almost inevitable with larger quantities of information.
- Precious time is wasted validating and tracking data.
- It can be extremely challenging to spot and correct errors, especially with larger volumes of data.
2. Track your net worth with Cova - the single source of truth for all your assets & investments
Imagine being able to track your net worth in real-time automatically by simply connecting your assets and liabilities to a single dashboard.
Cova is the single source of truth for all your assets & investments, helping you organize your assets and liabilities in one place and safely transfer your information to your beneficiaries in case of eventualities.
You are able to connect your banks, investment and brokerage accounts, stocks, mutual funds, retirement accounts, real estate, arts, automobiles, and liabilities like loans, mortgages, etc. In addition to being able to add a beneficiary to your portfolio in case of eventualities.
It takes only 5 minutes to set up a Cova account and start tracking all of your digital and traditional assets in one place now:
- See and manage all your assets in one place.
- Add notes & documents to each asset.
- See an accurate picture of your net worth.
- Manage your digital vault
- Create a dead man’s switch
Create an account to start tracking and managing your net worth with Cova