How to Create Wealth Using a Net Worth App and Stop Living Paycheck to Paycheck.

Did you know that having a large income does not necessarily mean you will have a large net worth?
Take lottery winners for examples. 70% of winners end up broke in 5 years or less. WHAT? How is that possible you might say. Well, it all comes down to know how to manage your money. This is a learned skill and I’ll outline how to focus on the most critical step in this post.
Is 2018 the year you want to be more financially responsible? Are you trying to pay off debt like 29% of other American’s? Have you been working your way to that debt free life and want a great net worth app to help you monitor your progress?
Did you know, focusing on your budget is not the best way to follow your progress.
It isn’t even by focusing on your debt isn’t either.
So what is the best kept secret?

The key is learning to monitor your all important net worth. Net worth is the key factor that gives the best perspective on your overall financial wealth and I’ll show you a net worth app that will make you focus on your net worth like never before.

Step 1. Mindset

 

Wealth and abundance don’t just happen to some people. The reality is, it’s a learned skill. Handling money and building wealth is a habit that you can cultivate this year! I highly recommend that you begin a reading list of personal finance books that will change your thoughts then your habits.
If the processes you have in place right now aren’t working for you then change them.
The average person reads about 4 books a year. Sadly, that isn’t exactly expanding your horizon’s.

“What really fueled this net worth mindset for me was reading “Rich Dad, Poor Dad.” That’s so stereotypical (at least for a lot of financially-minded people), but it’s true: that book planted the seed for me as to why net worth (and not salary, home size, etc.) was the true measure of wealth, and I would recommend it to anyone & everyone starting their money journey.”

If you begin learning from others who have overcome debt and build wealth, it will give you strategies and principles you can immediately begin implementing into your own life.

 

“When it comes to personal finance your net worth is one of the most important numbers to pay attention too. You can increase your income as much as you want but if your spending continues to be out of control your net worth will stay stagnate. After creating a budget and understanding your spending habits getting the big picture of your finances is next. Calculate your net worth (we use Mint & Personal Capital) and look for areas to improve (high-interest debt, car loans, low savings, etc). Financial freedom is the ultimate freedom. Take the steps today to take control of your life and set yourself up for a much better future”.

The Savvy Couple thesavvycouple.com
 Build Wealth with a Net Worth App so you can stop living paycheck to paycheck.
This post contains affiliate links. See Disclosure for more info.

Step 2. Budgeting

Before you can effectively use your net worth for good information you need to have a daily accurate budget.
What? A DAILY accurate budget? Yes, because you spend money on an almost daily basis. If you don’t know how much money you have to spend on a specific category, you will very easily overspend! This leads to the living paycheck to paycheck lifestyle that leaves many people frustrated and struggling.

“When you’re trying to grow your net worth the very first step is to work on your cash flow. If you have positive cash flow your net worth will grow. If you have negative cash flow (you spend more than you earn) your net worth will shrink.” www.ThePracticalPenny.com

“My hands down favorite tool that I recommend to everyone is the budgeting software You Need a Budget (YNAB). It’s made the biggest difference to me and my net worth! I’m a huge fan and while it’s got a bit of a learning curve, it’s so worth it.” Lynne Somerman www.TheWiserMiser.com

Lynne and I use the same app/ program called You Need A Budget or YNAB. It has totally changed budgeting for me and I LOVE.THIS.APP!

Once you have it set up, you can pull it out, look to see how much you have in clothing and see you have $45.98 left to spend in that category for the month. Yippie, now I can buy these adorable pair of heels guilt free. Your decision making begins to take place based on facts! It’s incredible powerful and liberating too.

The more you work with it, the less stressful life becomes. Many, many people have climbed out of debt and built their lives up because of using this app. Just read through the Facebook Group “YNAB (you need a budget) fans!”

I talk more more in depth about YNAB in this post.

Daniel Wesley?

Step 3 It’s Up to You

The bottom line is, no one cares about your finances as much as you do. 2018 can be a turning point year for you if you determine to make it a better year.
  • Read more great books on personal finance.
  • Listen to some great Podcasts like HerMoney with Jean Chatzky or Be Wealthy and Smart with Linda P. Jones
  • Subscribe to personal finance blog, like this one!
  • Follow the great bloggers who I’ve quoted through out this post. These personal finance bloggers all have unique perspectives and can add so much knowledge to your mindset.
  • Thing about using a financial adviser as your net worth grows.
“My best advice for growing your net worth in 2018 is to simply ask for more. So many people miss out on great opportunities because they’re afraid to ask. Have you asked recently for a raise or bonus? Maybe you can work some overtime to make more money to invest, pay down debt or whatever. Your current job is the best money-making tool you have, so make sure you’re getting the most value you can. The same is true for your budget. There’s probably a better deal to be had on your cable, cell phone, internet and insurance. Just phone them and ask for it! Tell them that the current plan no longer fits within your budget and you need to reduce your cost by x amount. Trust me, it works.”
Ninja Budgeter www.NinjaBudgeter.com

Step 4 Simplify

Today we are all busy with life. Simplifying your financial decisions by using apps and automatic withdrawals and transfers is a really great step.
Taking the time to get the ball rolling is definitely the hardest part. But keeping it going is much easier when set on auto pilot.
“One of the biggest factors that has helped towards our net worth increase has been making savings automatic. I try to make as many saving and investing areas automatic so that I do not have to think about it or remember to make a transfer each month. Currently, all of our retirement contributions and HSA savings are automatically deducted from our paychecks. Then, we have a portion of the remaining part of our paycheck direct deposited into a savings account with the balance hitting our checking account. This helps us to meet our savings goals without thinking about it as we work to build our net worth!”

Use an App

Most companies have an app for there services because it simplifies life. Which I for one love! Finances are no different.

The best app for tracking your Net Worth I’ve seen is Personal Capital.
Here is now to setup your account. Step by step. I initially used my computer so the screen shots are from that but it will give you a sense for what to expect when you set up your account.
The Best Net Worth App You Can Use for Growing Your Wealth.

 

Like always, you’ll need to sign up first.

Once you are in the program you will want to connect all your accounts. Retirement accounts at work, debts, credit cards etc.

The Best Net Worth App You Can Use for Growing Your Wealth.

You will have a snap shot of your whole financial picture all in one place! That is pretty powerful right there.

The Best Net Worth App You Can Use for Growing Your Wealth.

This tool right here for retirement planning is really great. If you want to look at different “what if” situations then you are going to love looking at all the data! It may help you make some good decisions and see areas where you can improve, tweek and adjust.

 

The Best Net Worth App for Growing Your Wealth.

The power in watching your Net Worth number is because it takes into consideration all aspects of your finances.

The goal is to eliminate personal debt {liabilities} and grow your assets.

As you work on growing your net worth it effects how you see purchases in your day to day life. Evaluating the necessity’s vs wants becomes much simpler. Plus, it might just become a new game that you’ll start playing with yourself too.

“Now, how much can I grow my net worth this month?”

So what is holding you back from growing your Net Worth in 2018? Let’s get started!!

The Best Net Worth App for Growing Your Wealth.

 

The best part is Personal Capital is FREE to join and use.

Once you start using it comment below and let me know what you think about it!  Do you like the tools, the stats the best or what you learned by tracking your net worth. I love hearing from my amazing Savvy Saver Tribe!

 


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2 Comments

  1. Brittney @ Britt & the Benjamins January 15, 2018 at 10:35 pm

    Wonderful post – had never even heard of YNAB before!

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