Before you start
Choose a date that fits your schedule, such as the last day of the month. Gather balances from your financial institutions and the tracker or spreadsheet you used last time. Monthly tracking is a suggested routine, not a requirement.
Your check-in checklist
- Record the snapshot date.
- Refresh checking and savings balances.
- Refresh investment and retirement account balances.
- Update outstanding debts.
- Review any property or other estimated values using a consistent method.
- Check for missing accounts and duplicate entries.
- Calculate assets minus debts.
- Compare with the previous snapshot.
- Keep a note explaining unusual changes.
Separate a balance change from a tracking change
A higher total can reflect savings, investment-price changes, debt repayment, or simply adding an account you forgot last month. Those are different explanations. A note such as “added an old retirement account” keeps your history understandable.
A transfer between your own accounts should not change total net worth by itself. If one balance has updated and the other has not, the snapshot can temporarily look too high or too low.
Check the arithmetic
Illustrative example: Last month, assets were $70,000 and debts were $12,000: net worth was $58,000. This month, assets are $71,500 and debts are $11,500: net worth is $60,000. The change is $2,000.
That change alone does not establish an investment return. Contributions, withdrawals, valuation changes, and debt balances can all affect it.
Handle estimates consistently
For assets without a readily available balance, record the valuation method and date. Avoid treating an estimate as cash you can spend or a guaranteed sale price. If you change the method, note that change so later comparisons do not suggest false precision.
Choose a place to keep the routine
A spreadsheet lets you define your own rows, formulas, and notes. An iPhone tracker can suit people who prefer to enter balances on their phone. Ascend supports manual balance entry on iPhone; review its current product page to see whether it fits your routine.
For your first snapshot, read how to track net worth on iPhone. For help choosing a format, see spreadsheet vs. iPhone app.
Finish with one useful note
Record the main explanation you can verify, rather than trying to explain every small fluctuation. “Paid down a loan” or “included an omitted account” will be more useful next month than an unexplained total.