Apr 20, 2016
Last week we covered a rough formula for working out what your Net Worth needs to be in order to be financially free one day. But there might be a lot of days from where you are now to where you want to be, so today I’m going to give you five things to track when growing net worth. Let's get practical!
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Five Things To Track When Growing Net Worth
So last week I took a deep dive into Net Worth, and tried to help you come up with a number to aim for. This cash figure, when converted into an income ought to be enough, when combined with other sources of income, to give you the life you want to lead.
Now we have a target, but if that target is 25 years away, there are plenty of opportunities to leave the straight path. Sticking to the plan requires discipline and effort of will. I can’t really help you with that, but I can help you with the other part of the equation, which is to give you an idea of the things you need to keep track of as you go along.
In this session, you'll discover:
- The one key to building wealth (which will come as no surprise to regular listeners)
- The importance of savings rate as a metric for success
- How often you should be tracking the five elements
- Why you shouldn't worry if the target moves further away one year
- Why one of the five measures is entirely up to you, and why I don't bother with it
Next week, I'll be looking at what to do if you discover you are not on track
Resources mentioned in this show
Course: Learn How To Budget on Udemy Podcast: Session 137 - Making More Money Website: Moneystepper Savings Challenge Podcast: Session 96 - How To Review An Investment Portfolio
And of course, there's the transcript of the show, which you can
get by clicking the big blue button below:
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