Why I track my net worth (but don’t set net worth goals)

I track my net worth, but don’t set net worth goals. Here’s why.

Setting goals I have control over

A large chunk of my assets are invested, so my net worth is heavily dependent on external factors like the stock market and the economy. I prefer to set goals for things I can control, so I no longer set net worth goals. I set goals around my actions instead (eg. “invest $50k in 2024”, “max out my 401(k) in 2024”), and trust the process.

So why do I even continue to track my net worth, if I’m not setting specific net worth goals?

Manual net worth tracking

Tracking my net worth helps me understand my financial situation and adjust my behavior, if necessary. I choose to manually update my net worth in my net worth tracker after every paycheck, even though it’s not necessarily the most efficient way to go about it (there are apps that’ll automatically pull that data for you). I enjoy the process of manually tracking my net worth (gamify your financial habits 👀💸), and it helps me stay more aware of the changes in my account balances and more engaged with my finances in general.

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Originally published at https://organized-finance.com on July 9, 2024.