Tracking your net worth

Wealthy people understand the huge distinction between working income and net worth. Working income is important, but is only one of the four factors that determine your net worth. The four net worth factors are:

Income - working income and passive income
Savings - if you don't keep any of your income, you will never create wealth
Investments - from the money you saved, move to the next stage by investing it
Simplification - simplify your lifestyle. What will it take for you to be happy financially?

Here's the url to download your net worth tracking sheet.

http://www.wealthlearning.net/download/net_worth_tracking_sheet.pdf

Most people know it's important to keep and organize all of your vital financial information. But knowing you should and knowing how are two different things!

Once you know the reasons for being very organized with your financial data (and keeping it all in a very safe place) I hope you will put organization on your net worth building to-do list (at or near the top).

You need to be able to see your financial strengths and weaknesses quickly. If you are an active investor, it's even more important that you do so. Time wasted on missing data and lost tracking information is money lost.

Also, keeping an accurate and up to date personal net worth statement (personal financial statement) can help you get loans or other financing more quickly.

It would be well worth the effort to be able to give your financial institutions information they need at a glance. And your needs for the same ability to query your net worth and data associated with accounts, investments, in and outgoing money, and other important data are very important.

Be sure and carefully consider all portions of your net worth. Often forgotten components of your net worth are listed below in a handy checklist to get your data system in order and on track.

• Cash on Hand and In Bank
• Notes Payable
• Marketable Securities
• Non-Marketable Securities
• Securities Held by Brokers
• Restricted or Control Stocks
• Partial Real Estate Interests
• Owned Real Estate
• Loans Receivable
• Life Insurance
• Other Assets
• Accounts Payable
• Amount Due to Brokers
• Unpaid Income
• Taxes
• Other Unpaid Taxes/Interest
• Other Debts
• Debt on Real Estate Equities
• Real Estate Mortgages

Make sure you know what you're really worth. The only way to calculate your net worth accurately is if you track everything above.

On your road to a high net worth you can make fewer pit stops if you have a plan and the data to support your investment decisions and abilities close at hand.

Make use of spread sheet software and programs (i.e. Quicken) to keep your net growth on track. The reports you can run are invaluable for seeing where you’ve been and how far you’ve come with your portfolios, mortgage, taxes, and other important information.

Networth

Hello again... i've gathered some questions about finding networth. Thank you.

I will be uploading a file to help you track your net worth. And of course, some further information about net worth.

Parkinson's Law

I recently read an article about Parkinson's Law. I've heard of Parkinson illness but never knew about of Parkinson's Law. Parkinson's Law could be more generalized still as: "The demand upon a resource always expands to match the supply of the resource." This law can be applied to individual too. As an individual's income rises, their costs of living and lifestyle increases to meet their income level.

So now lets have a better understanding. T. Harv Eker, bestselling author of Secrets of the Millionaire Mind, shares with us his view. Poor and most middle-class people believe that the only way to get rich is to earn a lot of money. They believe that only because they've never been there. They don't understand Parkinson's Law, which states, "Expenses will always rise in direct proportion to income."

Here's what's normal in our society. You have a car, you make more money, and you get a better car. You have a house, you make more money, and you get a bigger house. You have clothes, you make more money, and you get nicer clothes. You have holidays, you make more money, and you spend more on holidays. Of course there are a few exceptions to this rule... very few! In general, as income goes up, expenses almost invariably go up too. That's why income alone will never create wealth.

Therefore, if your intention is to be a millionaire or more, you must focus on building your net worth, which is based on much more than just your income. Do you know what's your net worth to the cent?