It is the first of the month. If you track one number about your money, make it net worth. Everything you own minus everything you owe. Once a month, same date, one line in a spreadsheet.
What goes in:
Assets: bank balances, fixed deposits, mutual funds, stocks, EPF and PPF, crypto at today's price, gold, the car at resale value, the home at a conservative value.
Liabilities: home loan balance, car loan, personal loans, credit card dues, money borrowed from family.
What stays out: salary, returns, and the price of Bitcoin. Income is not wealth. A 20% return on 5% of your money is a rounding error.
Why monthly and not daily: daily is noise. Monthly shows the direction, and after a year you will see what actually moved the number. In my case it was never a trade. It was the savings rate and one loan I finished early.
The honest part: including crypto at today's price means the number will swing. Mine fell for three months after last October's top and I kept recording it. That is the point. You are tracking your decisions, not the market's mood.
First of the month, fifteen minutes, one number. It is the quietest habit with the loudest result. Today is a good day to start.
Do you know your net worth today, within 10%?
Education only, not financial advice.
$BTC #NetWorth #PersonalFinance #MoneyHabits
What goes in:
Assets: bank balances, fixed deposits, mutual funds, stocks, EPF and PPF, crypto at today's price, gold, the car at resale value, the home at a conservative value.
Liabilities: home loan balance, car loan, personal loans, credit card dues, money borrowed from family.
What stays out: salary, returns, and the price of Bitcoin. Income is not wealth. A 20% return on 5% of your money is a rounding error.
Why monthly and not daily: daily is noise. Monthly shows the direction, and after a year you will see what actually moved the number. In my case it was never a trade. It was the savings rate and one loan I finished early.
The honest part: including crypto at today's price means the number will swing. Mine fell for three months after last October's top and I kept recording it. That is the point. You are tracking your decisions, not the market's mood.
First of the month, fifteen minutes, one number. It is the quietest habit with the loudest result. Today is a good day to start.
Do you know your net worth today, within 10%?
Education only, not financial advice.
$BTC #NetWorth #PersonalFinance #MoneyHabits
