Whenever I travel to a new place, my initial reaction is to quickly survey the land and look for the nearest, highest point that I can somewhat easily scramble up. There is something orienting about understanding the lay of the land. It helps me acknowledge where I am, where I want to go, and what I want to see. Tracking your net worth serves the same purpose – you need to understand financially where you are and where you want to go.
“What gets measured gets managed.”
I’m a big believer of this statement and it can be very beneficial or an absolute disaster if the wrong thing gets measured.
I promised this blog wouldn’t be full of a bunch of advice as there are multiple ways to skin the wealth-building cat. However, it seems any PF blogger worth their financial salt has their go-to wealth-building tip that they feel most helped them get to where they are.
For some, it is to never own a car and live in an area where you can bike to work. For others, it may be that dividend, index fund, or peer-to-peer investing trumps all else. Further yet, buying rentals and becoming a landlord is another silver bullet that some may preach.
All of these are doable and great options. However, the only way to get to a point where you can do these things is to have the money to do so first.