This is a series of posts aimed at tracking, planning, building, and adjusting your wealth building plans.

Step 2: Tracking Net Worth

Like anything having a cycle of planning, measuring, and adjusting is key to success. In this light let's measure our net worth over time and see how we are doing. Goals are to increase net worth, reduce and eliminate debt, and increase income streams.

Spreadsheet

Spreadsheets are your friend. Again I'm going to use a spreadsheet to track and measure net worth over time. Use columns in the sheet to track all your accounts, assets, debts, and totals. Here is a snapshot of the spreadsheet. Customize to your needs by adding or removing columns to suit your situation.

Monthly Net Worth Spreadsheet

I record the balances and calculate the totals for each account at the end of the month. I use the yellow rows to project out one or two months.

Year over Year Net Worth and Projections

I use the y/y tab to keep track of my year over year net worth and projections. This allows me to see if I'm meeting targets, need adjustments, or if I'm ahead of the game.

Year over Year Net Worth Spreadsheet

In the prediction rows, once I finalize the row, I put a comment in the cells measuring if I beat or missed the projection and by how much. Here is the formula to calculate percent change:

\[ \Delta = \frac{predicted - actual}{actual} \cdot 100 \]

then I add the comment and finalize the row by turning the background color back to white and estimate the next year(s).

Conclusion

Here is the spreadsheet, GSPC Net Worth Template, you can make a copy and customize to start tracking your own net worth and make adjustments to your financial and retirement plans.