Building Wealth: The Key to Financial Success Lies in Monitoring Your Balance Sheet

The number one most important thing that you can do to make sure that you are building, accumulating and preserving wealth is to monitor your balance sheet. Everybody looks at their revenue expenses and everybody thinks that that’s the way to budget. That’s actually not the long term strategic way to budget. The best way to do that is to consistently and periodically track your net worth, track your balance sheet. My adult children are ahead of the game and starting to do it in their early 20s. Whatever age you’re at, start doing it now. Pick a day of the year that you review it every single year. As you accumulate more assets, you’ll have to do it more often. And make sure every time you look at it, that number goes up. It will help you target goals and make the right choices. And what gets measured gets done.