For years I tracked spending. How much on groceries. How much on eating out. How much on gas. I had categories and subcategories and color-coded tabs. And every month I felt stressed because the numbers never seemed right.
Then I stopped tracking spending and started tracking one number: net worth. Assets minus debts. Everything you own minus everything you owe. That's it.
Watching that number change over time did more for my financial confidence than any budget. Because a budget tells you what happened last month. Net worth tells you whether your life is moving in the right direction.
Download the free net worth tracker
Google Sheets. 12 months on one tab. Auto-calculates totals and charts your progress over time.
Get the spreadsheet (free)What goes in the spreadsheet
Assets (what you own)
Checking accounts. Savings accounts. Retirement accounts (401k, IRA, Roth). Investment accounts. HSA balance. Home value (use Zillow's estimate, it's close enough). Car value (use KBB). 529 plans. Cash value of life insurance if applicable.
Don't overthink this. You're not appraising your house for sale. You're getting a ballpark. Zillow says $380,000? Put $380,000. It'll be within 5% and that's plenty accurate for this exercise.
Debts (what you owe)
Mortgage balance. Car loans. Student loans. Credit card balances. Personal loans. Medical debt. That loan from your parents if you're being honest.
The formula
Assets minus debts equals net worth. The spreadsheet does this math for you. You just enter the numbers once a month.
The 10-minute monthly process
Pick a day. The 1st of the month works. Set a calendar reminder. Then:
Minutes 1-4: Log into your bank. Write down checking and savings balances. Log into your retirement accounts. Write down balances. If you have a 529, check that too.
Minutes 5-7: Log into your mortgage servicer. Write down the current balance. Check car loan and student loan balances. Check credit card statements for any carried balance.
Minutes 8-10: Enter all numbers into the spreadsheet. The formulas calculate everything. Look at the chart. See if the line went up or down. Done.
That's it. Ten minutes. Once a month. The chart updates automatically and shows you the trend over time.
Why this changes your behavior
When you track net worth monthly, every financial decision starts filtering through one question: does this move the number up or down?
Paying an extra $200 on the mortgage? Moves it up (debt goes down). Buying a $3,000 TV on a credit card? Moves it down (debt goes up). Maxing out your 401k match? Moves it up significantly over time. Leasing a new car you don't need? Moves it down.
You stop thinking in monthly cash flow terms and start thinking in wealth-building terms. That shift matters. The median American household's net worth is about $193,000 Source: Federal Reserve Survey of Consumer Finances, 2022 . Most people have no idea where they stand. Just knowing your number puts you ahead.
What to expect in year one
The first number might be negative. That's normal. If you have a mortgage, student loans, and a car payment, your debts might exceed your assets. Don't panic. The point isn't where you start. It's the direction of the line.
Months 1-3: The line barely moves. This is normal. You're establishing a baseline. Don't get discouraged.
Months 4-6: You start seeing small changes. Mortgage balance ticking down. Retirement account growing. The line starts moving up, slowly.
Months 7-12: Compound effects kick in. Retirement contributions plus market growth start adding up. If you paid off a credit card or car loan, the jump is visible. This is when the habit becomes motivating instead of depressing.
Year 2+: The line accelerates. This is compound growth in action. The amount your net worth grows in month 18 is larger than the amount it grew in month 6, even if you're doing the same things. That's the magic of tracking: you see the compounding happen in real time.
Advanced: combine with your budget
The net worth tracker and the one-page budget work as a pair. The budget manages the month. The net worth tracker manages the year. Use the budget to control spending. Use the net worth tracker to see if the spending control is actually building wealth.
Bring both to your monthly money check-in with your partner. Budget first (10 minutes), then net worth (5 minutes). Fifteen minutes total and you have a complete picture of your financial life.
Get the tracker
Google Sheets. 12-month view. Auto-calculates and charts your net worth over time.
Download now (free)