December 12, 2013

Most folks gauge their financial situation by how much money they make or how much neat “stuff” they have. What should be used to track your wealth?

2 thoughts on “December 12, 2013”

  1. Alex Lee Christianson says:

    Instead of thinking that all of that depreciating stuff is wealth, it is better to measure it in terms of; how stressed you are about your financial situation, how much debt you have (the lower the better), and the holistic value of your net worth (appreciating assets plus depreciating assets) in terms of current dollar worth. (Ie. a car that you bought for 30,000 is not worth dollars the time you look to sell it).

  2. Mike Finley says:

    Well said, Alex. The net worth statement should be used to track how you are doing financially, not how much money you make or how much stuff you have. There are many people who file bankruptcy who made a lot of money and owned a lot of stuff. Don’t be one of them!

    You can and should start today tracking your financial situation. You can go to the net worth tab on this website, hit on it, and it will take you to an example (which you can download onto your computer) and instructions. Start TODAY!

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