Episode 2 The Importance of Tracking Your Net Worth

In episode 2 Roger Whitney talks about the importance tracking your net worth, how you can use it to make smarter financial decisions  and  rethinking your perspective about the purpose of investing.PLAN WELL SegmentYour net worth statement is an essential tool for making smarter decisions. Your net worth statement:gives you your entire financial picture in one placeequals the sum of all of your financial decisions over timeallows you to identify risk and opportunities in your financial lifeis a much better tool to track your financial progress over time than your investment accountsYou should update your new worth statement every six months and use as part of your process for making big financial decisions. INVEST WISELY SegmentOver the last 25 years investing has been about "creating wealth."This has led to many people investing too aggressively.Historically, the creation of wealth came from hard work, enterprise, creativity, disciplined spending and savings. The purpose of investing was to preserve and grow the wealth WE created. This perspective is important for you to consider.It:keeps the focus on the true driver of wealth creation.....YOUmay allow you to invest less aggressivelypositions you better to invest more consistently over time