If I were to ask you how you’re doing with your money, what answer would you give me? Do you know the details of the things you own and the things you owe? Do you know whether your net worth is positive or negative?
Whether those questions give you some anxiety or make you excited, it’s very important to know exactly where you stand financially.
Your net worth, the current “location” of your money
Do you remember the days before everyone had access to a GPS? When you had to unfold the state map or open up the atlas in order to navigate a road trip into areas unfamiliar to you?
I clearly recall my parents highlighting the route to the beach in order for us to take a summer vacation a few states away. We would follow along the route with them, turning the pages of the atlas when we made it to the edge of the page.
How things have changed! I don’t know how long it has been since I looked at an actual map!
There was a big problem with the map, though. As kids, we would get bored focusing on it in the car—or decide to take a nap! Then, an hour or two down the road, we would have no idea of our current location!
We quickly discovered it was impossible to figure out which direction to go next if you don’t know where you currently are!
Of course, now, since everyone has a GPS readily available at their fingertips, we can just type in an address in our smartphone (or simply tell Siri to take us there!) and off we go!
Our GPS knows exactly where we are starting from and directs us to our desired destination.
Have you ever thought about your money from that perspective? Where do you stand financially?
Do you know where you stand financially at this current moment?
Are you spending more or less than you make each month?
How much money do you have saved?
How much are your material assets worth? These would be things you own, like your car or home.
How much debt do you owe? This can be credit cards, car loans, student loans, the principal left on your mortgage, etc.
These items are all indicators giving you an idea of where you stand financially.
Take some time today to research your money. Don’t shy away from this! Get to know your numbers!
If you want a convenient place to display all of your numbers together online, check out Personal Capital. I have been using their platform for a couple of years now and LOVE it!
***By the way, Personal Capital offers amazing referral bonuses for my friends, like $50 Amazon gift cards!! If you sign up with my link and have a qualifying investment account (at least $1000 in it), you get the bonus!! I’m not allowed to post the link in a blog post, so just message me on Facebook or email me at pennystewardmama@gmail.com, and I’ll let you know all about it!
You can use an online platform like Personal Capital to calculate your net worth.
Link all of your accounts—assets (what you own, like checking and savings accounts, retirement accounts, and the value of your home) and liabilities (what you owe, like car loans, student loans, credit card balances, and your mortgage) and Personal Capital will display them beautifully!
It will keep track of all your numbers in one place–for FREE! This makes it really handy to keep up with your finances even as those numbers flex up and down. Just log in to one place and there they all are!
Personal Capital acts like a GPS for your money. Not only does it let you know where you are, it even projects out to show where you are headed!
Another option is to use paper to track your net worth.
If you would rather have a handwritten paper copy of your financial indicators instead , that’s fine too! There is definitely a benefit to writing all your numbers down in your own handwriting. This works just as well depending on your personal preference!
Either way, once you have your numbers in front of you, think about what you discover.
Where do you stand financially?
Are you pleased? Disappointed? Any surprises?
You now know EXACTLY where you stand financially and you will have a better idea where to go from here.
You finally have the knowledge to make the best financial decisions that make sense for you and your family.
No more guessing. You can make course corrections if needed or you can continue on your current financial track if it is taking you where you want to go!
Congratulations on taking this HUGE step to organizing your finances all in one place, whether electronically or on paper.
Next time you use your GPS to head to a new destination, let it be a reminder to know your “money location” as well.
If you continue to keep tabs on those numbers, it will be much easier to determine which direction your financial future is headed and help you make better financial decisions along the way.
Best wishes, and until next time, continue to steward intentionally.
Heather
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I am enjoying reading your blog Heather. Your questions are really thought provoking. Making me wish I had thought more carefully years ago. Lol!!
Glad you are enjoying it! And it is never too late to start! Thanks for the comment!