MMP155: Five things to track when growing Net Worth

The Meaningful Money Personal Finance Podcast

Pete Matthew

Education, Business, Investing

4.9 • 1.7K Ratings

🗓️ 20 April 2016

⏱️ 32 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

Last week we covered a rough formula for working out what your Net Worth needs to be in order to be financially free one day. But there might be a lot of days from where you are now to where you want to be, so today I’m going to give you five things to track when growing net worth. Let's get practical!

Net Worth: How To Keep Track

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Five Things To Track When Growing Net Worth

So last week I took a deep dive into Net Worth, and tried to help you come up with a number to aim for. This cash figure, when converted into an income ought to be enough, when combined with other sources of income, to give you the life you want to lead.

Now we have a target, but if that target is 25 years away, there are plenty of opportunities to leave the straight path. Sticking to the plan requires discipline and effort of will. I can’t really help you with that, but I can help you with the other part of the equation, which is to give you an idea of the things you need to keep track of as you go along.

In this session, you'll discover:

The one key to building wealth (which will come as no surprise to regular listeners)
The importance of savings rate as a metric for success
How often you should be tracking the five elements
Why you shouldn't worry if the target moves further away one year
Why one of the five measures is entirely up to you, and why I don't bother with it

Next week, I'll be looking at what to do if you discover you are not on track

Resources mentioned in this show

Course: Learn How To Budget on Udemy Podcast: Session 137 - Making More Money Website: Moneystepper Savings Challenge Podcast: Session 96 - How To Review An Investment Portfolio

And of course, there's the transcript of the show, which you can get by clicking the big blue button below:

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Transcript

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0:00.0	Hi, folks, and welcome to the Meaningful Money podcast session number 155.
0:04.5	Good plan.
0:05.1	And we'll keep track of all the money we spend with IOUs.
0:07.6	We'll be meticulous.
0:12.8	This is the podcast dedicated to helping you put your finances in order.
0:19.9	My name is Pete Matthew, and I'm going to share
0:21.7	with you everything you need to know and everything you need to do to secure your financial future.
0:27.1	I'm here to help you make sense of money.
0:37.3	Here we are again. It's Friday afternoon. It's not obviously when you're listening to this, or maybe, but it's Friday afternoon when I'm recording it. And it's nearly the weekend.
0:46.1	Another two and a half hours or so, I shall be going and having my weekly crash out in the sauna, in the jacuzzi, and the steam room.
0:53.5	You know, it's like an hour
0:54.7	and a half of me time at the end of the working week and I really look forward to it.
0:58.8	Now, last week we covered a kind of a rough formula for working out what your net worth needs to be,
1:05.2	what it is now and how that all works, but what it needs to be in order to be financially free one
1:10.1	day, whatever your definition
1:11.3	of that is. But there might be a lot of days from where you are now to where you want to be.
1:17.4	So today I'm going to look at what you need to keep track of as you go along. So nice and practical.
1:22.6	You may be surprised to know it's not as much as you might think. Okay. But what you need to
1:26.2	keep a track of as you go along on your journey towards financial independence. As usual, after the main body
1:32.1	of the show, I'm going to be looking at what some reviews that have been left, an absolute
1:35.5	purler this week. I can't wait to share that with you. Really, really delighted, one of my
1:40.9	favourites ever. And obviously I'll announce that we're going to be talking next time. But before any of that, remember, this podcast is brought to you with a very kind
	...

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