There are two things that I feel is important for anyone to start on a financial journey.
1. File and Folder management of your asset ownership papers and liabilities documents.
2. Keep a summarized record of all the assets and liabilities in one place.
Keep your asset and liabilities papers in order. Physical files and folders will be helpful. Besides hard copies, now a days digitally signed soft copies are also made available to investors. Keep these also filed in your laptop/desktop and keep regular backups.
Tracking Net Worth
This is easy if you are conversant with excel spreadsheets, open office or google docs. A little bit of skill in excel can be useful to develop charts and graphs to trace networth over different time.
Do not be distressed in case you are new to excel or have never used it’s rich features. There are some options available on the net. Just be careful when filling information over the net. Make sure the site is trustworthy and you do not fill in the specifics.
Check if your online banking portal has the facility of tracking your Networth.
Following are the advantages of tracking one’s Networth:
a. It would help one to analyze one’s past strategies and it’s effect. Taking corrective action would be easy and helpful.
b. For people who are goal oriented, the chart should provide motivation to reach certain levels of goals.
c. If you look at the chart and then decide on some expenditure after analyzing the impact on the trend of the chart, hopefully it will prevent you from making some unwanted expenses.
Update your information over different periods and track it as you start on your financial journey.