Net worth – How often should you calculate this?

by Dual Income No Kids on July 24, 2007 · 0 comments


We recently received a very good question about how often it is advised to update your net worth. There are a couple of perspectives on how often to update.

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.

Miel

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DINKS (Dual Income No Kids) Finance focuses on personal finance for couples. While by no means financial experts, we strive to provide readers with new, innovative ways of thinking about finance. Sign up now to get our ebook, "Making Money Tips for Couples" FREE.

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