This is the seventh part of a series on setting up a financial plan.
The beginning of the series is here.
The previous article is “5 Accounts, #5 – 401(k)“.
The next article is “Financial Tools: Budget Tracking/Planning“.

Apologies for the slight hiatus – one day I’ll find the “sweet spot” combination of lifestyle, organisation and motivation to write on a regular schedule. Until then… sporadicity rules…

Last time I posted on personal finance, we wrapped up my summary of the 5 types of account I think I’m going to need for my nascent plan.

With that done, it’s time to look at the tools we’ll need to build and execute that plan.

Today, it’s the turn of the Net Worth Tracker and Planner.

What’s a Net Worth Tracker?

Put simply, a Net Worth Tracker is a spreadsheet, website or application that you can use to track your Net Worth. I like to think of it (somewhat macabrely) as the sum total your beneficiaries would get if you accidentally fell off a cliff tomorrow.

Your “Net Worth” includes every major financial balance in your life – the value of any cars, the equity you have in any homes, the sums of your retirement accounts, savings, checking accounts, wallet, investments and so on; as well as your debts – credit cards, loans, mortgages, etc.

A Net Worth Tracker is an invaluable tool in getting a better grip on your finances because it’s a (maybe sunny, maybe brutal) “quick sweep” overview of your current financial health, and a great way, by filling it in week-to-week (or month-to-month) of reviewing progress towards your financial goals, or seeing the effects of missteps.