Importance of Tracking Finances
I have been watching a lot Alex Hormozi lately (acquisition.com) and one habit that he implements has stuck with me. Every morning he tracks all of his bank accounts and debts to calculate his net worth. The idea is that he will hopefully be able to watch it over time and track why all of a sudden it may stop growing long term.
Tracking your assets is important because it allows you to see what you own and how it is performing. This includes items such as cash, investments, property, and other valuable possessions. By keeping track of your assets, you can identify areas where you may need to make changes to improve your financial situation.
Liabilities, on the other hand, are the amounts of money you owe to others. This includes things like mortgages, credit card debt, and car loans. By tracking your liabilities, you can see how much you owe and to whom. This can help you identify areas where you may need to make changes to improve your financial situation.
It’s very easy to remember the difference between assets and liabilities. “Assets” are values (positive balance), “Liabilities” are balances you will need to pay (negative balance).
How I Use Notion to Track my Net Worth per Day
Instead of tracking my bank accounts every single day and using a calculator (the simple way), I simply have Notion calculate it for me. I have found using Notion to be much simpler than using something like an Excel Spreadsheet.
Downloading the Template
The first thing you will need is my free “Net Worth Template”. You can download that here:
- Make sure you’ve already created a Notion account.
- Click on the link above.
- Select “Duplicate” in the top right corner.
- Create a new template in your Notion workspace.
- Fill in the sheet.
Filling in the Gaps/Important Notes
- List Every Item that you consider assets and liabilities.
- Assets
- 🏠 Your House
- 🏎️ Car Value (Kelly Blue Book)
- 💰 Checking Accounts
- 💰 Investment accounts (RothIRA, 401k, etc.)
- Liabilities
- 🏠 House Mortgage (outstanding balance)
- 🏎️ Car Loans
- 💳 Credit Cards
- 💳 Debts
- 💳. Payment Plans
- Do NOT write negative values. This will mess up the formula.
- Select the Item type for each item. The important part is making sure that either “Asset” or Liability shows at the end. This is used to change the “Actual Value” formula on the right side to positive or negative values.
- Once you have finished entering all your values, you can now look at your grand total on the bottom right!
Note: You can also create your own item type by adding a type to the list. It is important to make sure that the last word is “Asset” in your title, otherwise, the math will not work correctly in the “Actual Value” formula.
Closing
Overall, the Asset Tracker Template is a powerful and simple tool that can help you stay on top of your finances and achieve your financial goals. By tracking your assets, liabilities, and net worth, you can gain a better understanding of your financial situation and make more informed decisions about your money.
Feel free to use this all you want, and share it with anyone who you think might also find it helpful!
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Seeya tomorrow,
Malachi Corliss
