Financial strength is the dream of everyone. Your money won’t grow unless you know your net worth. This is why it is important to track wealth growth regularly. It helps you understand how much you save, how much you invest, and how fast your money grows.
Many people earn well but still feel lost. The reason is simple: they don’t follow wealth tracking methods. When you measure your money correctly, you make better decisions and avoid mistakes.
Reasons Why Tracking Wealth Matters
Tracking your wealth will,
- Allow you to keep control
- Identify your bad spending habits
- Boost the progress of your personal finances
- Help you plan your future more wisely
- Show your true financial power
Regular track wealth growth leads to individuals making wiser money decisions and hence quicker accumulation of wealth.
What You Should Measure Every Month
| Item to Track | Why It Matters |
| Income | Shows how stable your earnings are |
| Savings | Helps you know how much you keep |
| Investments | Tells whether your money is growing |
| Loans | Helps reduce debt stress |
| Net Worth | The real picture of your finances |
This monthly check helps you see your personal finance progress clearly.
How to Calculate Your Net Worth (Simple Method)
Your net worth is what you own minus what you owe. It is also the best way to track wealth growth.
Net Worth Formula
Net Worth = Total Assets – Total Liabilities
Example of Net Worth Calculation
| Category | Amount |
| Assets (Savings + FD + MF + Property) | ₹12,50,000 |
| Liabilities (Loans + Credit Dues) | ₹3,50,000 |
| Net Worth | ₹9,00,000 |
Repeating this every month gives you clear net worth calculation steps and helps you track growth.
Best Ways to Track Your Wealth Growth
Here are some easy and great wealth tracking methods you can use.
1. Use a Simple Spreadsheet
A spreadsheet can give you a clear picture of all your financials in one view. Make it a habit to update it once a month with
- Savings account balance
- Investments made
- Loan amounts still outstanding
- Expenses for the month
2. Keep Investments on a Different Track
If your investment portfolio consists of mutual funds, stocks, digital gold, or SIPs, create a different sheet. By doing this, you will be able to assess,
- The percentage of growth
- Total return on investment
- The level of risks taken
3. Use Wealth-Tracking Apps
There are various apps available that can track SIPs, expenses, loans, and even credit scores. Such applications make it easier to measure the progress of personal finance.
4. Review Your Budget Regularly
A budget serves as a reminder that you have a set plan to follow and will prevent you from spending more than what you have allocated.
5. Check Your Net Worth Every Month
This is the most powerful wealth tracking method because it reveals your actual financial situation. If your net worth increases at a steady rate, then you are going the right way.
Common Mistakes to Avoid
Mistakes such as the following are made even by those who try to monitor the growth of wealth,
- Ignoring hidden expenses
- Not updating numbers monthly
- Forgetting to include small debts
- Not checking investment performance
- Skipping net worth calculation steps
If you stay clear of these, your tracking of wealth will be straightforward and accurate.
Tips to Improve Your Financial Growth
- Set aside a minimum of 20% of your salary
- Begin SIPs very early
- Do not take any loans that you do not need
- Create a fund for emergencies
- Develop your income through acquiring more skills
- Get your investments reviewed every half a year
Combining these tips with the proper wealth tracking methods leads to quicker results.
Conclusion
The best way to become financially strong is simple: track wealth growth regularly. When you follow proper wealth tracking methods, measure your personal finance progress, and follow clear net worth calculation steps, you get a complete picture of your money.
Tracking keeps you disciplined, focused, and confident about your future. Start today, measure every month, and watch your wealth grow steadily.
