Have you ever wondered why some people seem to be effortlessly building wealth while others struggle to make ends meet—even with similar incomes? The secret often lies in one simple habit: tracking their net worth.
Now, I would like to preface this newsletter by saying that “Your self-worth is not determined by your net worth BUT your self worth affects your net worth” . Self-worth is how you view yourself, while net worth is the value of your assets minus your liabilities
As nurses, we’re used to keeping detailed records of our patients’ health, but how often do we check up on our financial health? Tracking your net worth is like taking your financial vitals—it gives you a clear picture of where you are financially and helps guide your decisions toward building wealth.
Here’s why tracking your net worth is essential for any nurse looking to build financial freedom:
1. It Shows You the Big Picture
Your net worth is a snapshot of your overall financial health. It’s the difference between what you own (assets like savings, retirement accounts, and property) and what you owe (debts like student loans, credit cards, and mortgages). By calculating your net worth, you get a clear view of your financial standing.
Think of it as a financial report card—it tells you whether you’re moving closer to your wealth goals or falling behind.
2. It Helps You Stay Focused on Wealth-Building
When you track your net worth, you start to see how different decisions impact your bottom line. Whether you’re paying down debt, saving for a house, or investing in your retirement, each move influences your net worth. Regularly checking in on this number keeps you motivated to make smart financial choices that grow your wealth, instead of just maintaining your lifestyle.
For example, paying off a high-interest loan will give you an instant boost in net worth. Tracking that progress can be incredibly motivating!
3. It Encourages Better Spending Habits
When you start tracking your net worth, you’ll notice how your spending choices either help or hurt your wealth-building journey. It becomes easier to say no to unnecessary expenses when you see their immediate impact on your financial health.
For nurses working hard to increase their income through side hustles or extra shifts, tracking your net worth helps you make sure those extra earnings go toward long-term wealth—rather than disappearing on short-term spending.
4. It’s the Key to Early Retirement
If you’re dreaming of retiring early or reaching financial freedom, your net worth is your guiding star. It tells you whether you’re on track to leave your 9-to-5 behind or if you need to make adjustments. Nurses, especially, often face the challenge of balancing high living expenses with career burnout. Tracking your net worth lets you plan your escape from the rat race with confidence.
5. It Reduces Financial Stress
Financial uncertainty can cause a lot of stress, especially when you’re unsure where your money is going or if you’re making enough progress toward your goals. But when you track your net worth, it gives you control. Instead of guessing, you know exactly where you stand, which helps reduce anxiety around money.
How to Start Tracking Your Net Worth
Don’t worry—it doesn’t have to be complicated. You can start tracking your net worth today with these simple steps:
- List Your Assets – Include everything you own: cash, savings accounts, retirement funds, real estate, and any other investments.
- List Your Liabilities – Write down all of your debts, like student loans, mortgages, car loans, and credit card balances.
- Subtract Liabilities from Assets – This gives you your net worth!
I personally like using a personal finance app like EMPOWER to track mine. Some people use tools like spreadsheets, or even pen and paper can help keep track over time. The key is to update your net worth regularly—whether monthly or quarterly—to stay on top of your financial health. (contains affiliate link)
Ready to Take Control of Your Wealth? Tracking your net worth is a simple but powerful habit that can transform your financial future. Start small, track consistently, and watch your wealth grow over time. By taking control of your finances today, you’re investing in a future where you can work less, live more, and build the wealth you deserve.
When you’re ready to invest, here is a great post on how to get started.
