Your net worth is the value of your asset minus debt.
I have a spreadsheet that I set up to calculate our net worth. I have to manually enter the latest stock prices, but that’s all right because it makes me more aware of how my investments are doing. It’s a bummer updating this spreadsheet during the down market though. Sometimes I ignore it for days and only update it when things start to look better. On the other hand, I update this spreadsheet almost daily when stocks are going up. It just feels good to see the net worth increasing.
In August, I didn’t like calculating the net worth at all, it was painful. On a rare good day like October 27th, I ran the number twice. VWO went up 6% yesterday. Emerging markets have been dragging down my portfolio all year long.
I also use Personal Capital, but I like my spreadsheet better. I can see my current allocation and constantly tweak my contribution to achieve my targeted asset allocation. For example, if my emerging market % is low, then I will increase my 401k contribution to that area next month.
I’m using using Personal Capital to manage my investments. You can keep track of your income, expenses, and investments, all in one place. Personal Capital is geared for investors and have many great tools. See my review of Personal Capital and how they helped me reduce what I’m paying in investment fees.
Anyway, I’m curious how often you check your net worth. Does the frequency change when you know you are losing or gaining money?
I calculate the net worth almost daily when my investments are doing well, and somewhere between weekly and monthly during the down market. What about you? Take my poll so we can see if this is the case for other investors.
If you need some help keeping track of your finances, you should Personal Capital.
For 2018, Joe plans to diversify his passive income by investing in US heartland real estate through RealtyShares. He has 3 rental units in Portland and he believes the local market is getting overpriced.
Joe highly recommends Personal Capital for DIY investors. He logs on to Personal Capital almost daily to check his cash flow and net worth. They have many useful tools that will help every investor analyze their portfolio and plan for retirement.