Why Net Worth Can Be Misleading

Why Net Worth Can Be Misleading thumbnail

If you track only one financial number, it should be your net worth. It’s the best indicator of your financial health, both today and over time, for the simple reason that just about every good financial decision you can make serves to either grow or protect it. But it’s not perfect, and in some cases it can be downright misleading…Read more…

The Most Important Financial Number

The Most Important Financial Number thumbnail

As you work your ass off to make good financial decisions, how can you tell whether you’re actually making progress? How do you know whether all that work is paying off? There’s one number that gives you a better answer than anything else, and in those post you’ll learn what it is, why it’s so important, and how to measure it yourself.Read more…

Why Net Worth is Misleading

If you spend any time at all learning about personal finance, you’ll quickly hear the advice to focus on net worth instead of income. Net worth, we’re told, is the true indicator of wealth. I mean, hey, just last week I wrote about the importance of net worth in bringing you closer to what I consider to be the top… Read more

What is Net Worth and Why is it Important?

Ever since I started using mint.com to track my budget several years ago, I’ve been fascinated by its tool to track my net worth. It became a something of a game to me, trying to make sure that it was increasing every single month. It was motivating, and that motivation improved my financial situation. Now I keep my own spreadsheet… Read more