I’ve written in the past about the virtues of tracking your net worth with a spreadsheet. If you take one thing away from reading this blog, it’s that you need to track your net worth with some frequency.
And to this ode, I have fallen short. I got off my routine back in May. In the past hour, I got back on the horse and caught up. Big four month gap there.
It came with a surprising revelation: my real estate cash account has gone low. There’s still quite a bit, but it is TOO low for my purposes. What happened? I have put out a bit of money to support my wife’s launching career as an author amidst other things.
What to do?!?! With every account in front of me, I reviewed all the monthly cash flows coming in and out and applied a handful of adjustments.
- Dialed back the bonus principal payments on the smallest investment mortgage.
- Slightly lowered the monthly payments on the HELOC.
- Pulled back the monthly amount being routed into prime checking.
- A recent stock option exercise recently settled, so I scheduled it to move to this account.
With all these adjustments, the cash balance on my real estate checking account should start to climb. And this is why its important to take a pulse once a month by writing down every asset and every liability.
I also reviewed the state of things now compared to two years ago. My total in liabilities has shrunk by over $60,000 while assets have increased by over $100,000. Net worth has grown by 29% total over that time frame.