Tracking your net worth might sound like something only wealthy people need to worry about, but it’s an essential step for anyone who wants to take control of their finances. Whether you’re just starting out or you’ve been managing your money for years, understanding where you stand financially can give you the clarity you need to make smarter decisions and work towards your financial goals. The good news is that there are plenty of personal finance tools available today to help you track your net worth with ease, and many of them are either free or affordable.
So, if you’re wondering how to get started, keep reading. Let’s break down the process and look at some of the best tools to track your net worth.
What is Net Worth and Why is It Important?
Before diving into the tools, it’s helpful to define exactly what net worth means. Simply put, your net worth is the difference between your assets (what you own) and your liabilities (what you owe). The formula looks like this:
Net Worth = Assets – Liabilities
For example, if you own a home worth $250,000, have $10,000 in savings, and owe $100,000 in mortgage debt, your net worth would be:
$250,000 + $10,000 – $100,000 = $160,000.
Knowing your net worth helps you understand your financial position at any given time. Are you in the positive? Great, you’re on the right track. Are you in the negative? That’s a signal to start addressing your debts and assets more carefully.
Benefits of Tracking Your Net Worth
Tracking your net worth regularly gives you a clear picture of your financial health. It allows you to see how well you’re progressing towards your financial goals, whether that’s saving for retirement, buying a house, or just paying off debt. By monitoring your net worth, you can identify areas where you might need to cut back or areas where you’re doing well, which helps you make better financial decisions.
Additionally, tracking your net worth can help you:
- Stay motivated: Seeing your net worth grow over time feels like a win and encourages you to keep going.
- Make informed decisions: It helps you determine whether to take on new debt, invest more, or save aggressively for a particular goal.
- Plan for the future: Knowing where you stand today helps you plan for your future — whether that’s retirement, paying for college, or just building wealth.
Now, let’s talk about some of the best personal finance tools for tracking your net worth.
Best Personal Finance Tools for Tracking Net Worth
1. Mint – The All-In-One Tool
One of the most popular personal finance tools out there is Mint. Mint automatically pulls in information from all your accounts, including your bank accounts, credit cards, loans, and investments, to give you a snapshot of your financial picture. It then calculates your net worth by subtracting your liabilities from your assets.
The best part? It’s free. Mint allows you to track not only your net worth, but also set budgets, track spending, and get personalized financial tips. Plus, the user interface is clean and easy to use, which makes managing your finances less of a hassle.
Key Features:
- Automatic account syncing: Mint links to almost every financial institution, so it pulls your information automatically.
- Budgeting tools: Create custom budgets for different categories like groceries, entertainment, and more.
- Credit score tracking: See your credit score and how it affects your financial health.
2. Personal Capital – Perfect for Investors
If you’re someone who is actively investing and wants to see how your investments are contributing to your net worth, Personal Capital might be the tool for you. While Mint is great for tracking everyday spending and general net worth, Personal Capital focuses more on helping you manage your investments.
It offers a unique feature called the Retirement Planner, which allows you to forecast your financial future based on your net worth and investment goals. With Personal Capital, you can also track your spending, net worth, and even plan for retirement, all in one place.
Key Features:
- Investment tracking: It shows how your investments are growing or losing value.
- Retirement planning: Forecast your retirement needs and track progress towards your goals.
- Fee analyzer: Helps you identify and reduce hidden fees in your investment accounts.
3. YNAB (You Need a Budget) – Budgeting Focused
If you prefer a more hands-on approach to budgeting and net worth tracking, YNAB is an excellent option. While it doesn’t automatically sync with all your accounts like Mint or Personal Capital, it gives you the power to create a budget that reflects your net worth goals. You can track your spending, save for short-term goals, and monitor your net worth as you go.
YNAB is all about helping you give every dollar a job, so you know exactly where your money is going each month. Plus, it has educational resources that teach you how to use YNAB effectively, which is a bonus if you’re new to budgeting.
Key Features:
- Zero-based budgeting: Every dollar is assigned to a category, helping you be intentional with your money.
- Goal tracking: Track your savings goals and see how your net worth grows over time.
- Reports: See detailed reports of your spending, income, and progress toward your financial goals.
4. EveryDollar – A Simple Solution for Budgeting
EveryDollar is a simple yet effective personal finance tool that focuses primarily on budgeting. It was created by Dave Ramsey, a well-known personal finance expert. Like YNAB, EveryDollar doesn’t automatically sync with your bank accounts unless you use the paid version. However, the free version allows you to manually input your expenses and track your net worth through budgeting categories.
The free version offers a lot of value, and the paid version adds even more features, like automatic syncing and account reconciliation. If you prefer simplicity and no-frills budgeting, EveryDollar is a great tool to consider.
Key Features:
- Easy-to-use interface: Simple and straightforward layout, which makes tracking your finances easy.
- Zero-based budgeting: Similar to YNAB, it ensures that every dollar you earn is allocated to a category.
- Debt tracker: Track how much you owe and create a plan to pay off your debt.
5. Wealthfront – A Robo-Advisor with Net Worth Tracking
Wealthfront is primarily known for its robo-advising service, where you can invest your money based on your goals and risk tolerance. However, it also has a net worth tracking feature. Wealthfront gives you a complete view of your financial picture, including investments, bank accounts, and retirement funds.
It’s great for those who are already invested and want to keep everything in one place. It automatically updates your net worth as the value of your investments changes.
Key Features:
- Automated investing: Invest in diversified portfolios with no effort on your part.
- Retirement and college planning: Helps you plan for future financial goals like retirement or college savings.
- Tax-efficient strategies: Uses tax-loss harvesting and other strategies to minimize your tax liability.
How to Get the Most Out of These Tools
To really benefit from these personal finance tools, consistency is key. Update your accounts regularly, track your progress, and make adjustments to your budget as your financial situation changes. It’s also a good idea to review your net worth quarterly to see how far you’ve come and identify any areas where you can improve.
Another important tip is to use these tools as part of a larger financial plan. Tracking your net worth is just one piece of the puzzle. You also need to set goals, create a budget, and make sure you’re on track with your savings and investments. Once you have a solid grasp of your finances, you’ll be better equipped to make smart decisions that align with your long-term goals.
Final Thoughts
Tracking your net worth doesn’t have to be a complicated process, and with the right personal finance tools, it can be easier than ever. Whether you choose Mint for its simplicity, Personal Capital for its investment tools, or YNAB for its hands-on budgeting approach, there’s a tool out there for everyone. By regularly monitoring your net worth, you can take control of your financial future, make more informed decisions, and set yourself up for long-term success.
Remember, the most important part is starting. Pick a tool, track your net worth, and begin working towards your financial goals today. The sooner you start, the sooner you’ll see results!