Creating and sticking to a monthly budget is key to living within your means and paying off any debts you may have. A quarterly financial check-up is different in that you’re assessing your net worth quarterly. Why do this you may ask? Whether you’re paying off debt or trying to increase your savings or investment accounts, a quarterly check-up does just what a physical check-up does. It makes sure you’re accounts are in good health. That your assets are getting “healthier” and your “unhealthy” debts are getting smaller.
It can be not only fun but motivating to look at that net worth increase every few months, let alone from the beginning of the year to the end. Doing your quarterly check-ups in March, June, September & December allows you to have a year-end assessment of your net worth, but any month will do. When you get the numbers from your different accounts, start adding them up. The “Other” category can include cash on hand. Once you’ve got the totals for your assets and liabilities, all it takes is a little math.
Assets – Liabilities = Net Worth
Now, you may be wondering where the idea of connection comes in? If you’re married, having financial goals as a couple certainly creates a shared vision. If you’re single, stay connected to your personal financial goals. We can easily get wrapped up the dollar signs, but financial goals are so much greater than that. They tie into our values – of having financial security, of connecting with our family and friends on vacations, of giving back, etc. – when we steward money well.
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