Here are the two metrics you need to track to achieve extreme, early wealth, plus my recommendation on the best free tool to help you improve them.
As you kick your financial planning into the next gear, the key to your success is building momentum. One of the best ways to build momentum is seeing the direct results of your efforts translate into higher numbers in your bank account.
Tracking just two numbers on a monthly basis will help you stay focused and more likely to achieve your goals. We cover them here.
Total Net Worth
You probably have your 401k with one vendor, your student debt with a different company, and your checking and other stocks with yet another. If you haven’t already, you need to reduce the friction of getting a total net worth update by building a single picture of your holdings.
A command central aggregator will also be very useful when you find yourself doing drill down exercises. You will want to review the mix of stocks vs bonds vs other assets in your portfolio, and adding up the amount of each type by hand is tedious.
A single view into your spending across checks, credit cards, and cash is an essential check up on your financial health. You will be able to see trends (i..e. Has spending been growing month to month and how much) as well as be able to drill down to spot any problem patterns.
As an example from my own life, I had noticed that somehow we had let ourselves get to more than $1,000 a month on eating out.