Option #1 – Update every three to six months.
- Not updating as often makes it so you are less likely to be flustered by changes in the market
- This approach is the sit back and let it ride method
Option #2 – Update monthly
- The advantage of updating monthly is that you can stay on top of your goals
- If you are ahead it feels good, we won’t talk about if you are not doing so good :-(
In my personal opinion, I think there are reasons for both, but I certainly advocate for knowing your net worth (even if you don’t think it is much). I started measuring my net worth when it was in the negative, so it feels pretty good to see where it is today. At first when James suggested that I consider calculating my net worth it seemed a bit futile imagining the numbers that would arise. In the end it has been an inspiration to see how far I have come.
I’ve also felt that James & I have been able to reach our goals most when we were continually paying attention to them. For our house and wedding savings we tracked our contributions on a bi-weekly basis. This really challenged us and kept us thinking about it. I think it helps to hold us accountable to our financial well-being.
No matter how often you calculate you net worth, don’t let it make you change your investment strategies just because of a down month in the market.
We’d love to hear your thoughts on how often you think is best to update your net worth.