Recently, I made the decision to start tracking my personal net worth and financial status in a very public and revealing way - by posting my financial numbers online for all to see. The point of doing this was not to boast, demonstrate some fanciful financial bravado, or unnecessarily parade my personal finance publicly to satisfy the whims of voyeuristic readers. In actuality, the objective was to have a way to show people the importance of proper statistical tracking when it comes to smart financial planning. The purpose of calculating and tracking your personal financial net worth on a regular basis is not just so you can match yourself against others to see how you're doing in comparison, but it's also to help you evaluate the current health of your finances. Like using a gauge to take your blood pressure reading or running blood tests to get a nutritional analysis, the point of net worth tracking is to use snapshots of your financial condition to help you make better decisions in furtherance of your personal financial goals.
I don't think it's an over-emphasis to stress that proper money management is a very critical component of responsible living. Other than how you handle your family, friends, personal relationships, or perhaps religious views, how you manage your money probably has the greatest effect on the quality of your daily life. The abundance or the lack thereof of money can determine whether you live an existence of paycheck to paycheck living or determine whether you are able toRead the full article »