I wrote a blog in the spring about cash flow (income minus expenses) and explained a simple way to figure out what you spend every year. However, another equally important number to know about in your financial picture is your Net Worth. You should always ensure that it’s moving in the right direction!
These days, with easy access to revolving credit, it’s too easy to overspend. Gone are the days when the bank account at zero meant no more money until pay day. To avoid digging ourselves into holes financially we need to take stock of our net worth every so often.