Have you ever pondered the question “Am I wealthy?” If so, you are not alone. Most, if not all, would like to have financial wellness to the point where they don’t have to settle for less than they want, and can enjoy life with no financial barriers. Wealth however, may mean something different based on who you are talking to. For example, some people may have a dollar value in mind to be considered rich or wealthy. For some individuals, if they have $10,000 they may consider themselves wealthy, while for others, several millions of dollars is what they would need to consider themselves wealthy. In addition, wealth can be determined not only by money in the bank, but also by other investments and assets. For example, if you own a business that brings in money (net profit), then that business adds to your wealth. If you own a piece of land, or home, or anything that has perceived value that others would be willing to pay for, then you have resources that adds to your wealth.
What I would encourage each of you to do is to track your net worth, which is the indicator of how wealthy you are. Your net worth is the value of what you own minus the value of what you owe. You can read my post on Building wealth without a six-figure income for more detail on the net worth calculation. You can determine the frequency of your net worth check (whether weekly, monthly, quarterly, etc.) to understand where you stand financially. I personally used to estimate and ballpark my net worth, however, since I started to track my net worth, I now have clarity of where I stand. To be honest, tracking your net worth also elevates your mindset when it comes to your money. You are more likely to make a conscious decision on whether or not your next purchase (not including daily living expenses) adds to your net worth or subtracts from it.
As the new year approaches, include frequent net worth check as one of your resolutions. You may be surprised at how this simple task changes your financial mindset and result in better financial decisions.