Your net worth—the difference between your assets and debt—is the big-picture number that can tell you where you stand financially. Keep an eye on it, and it can help keep you apprised of the progress you’re making toward your financial goals—or warn you if you’re backsliding.
I recommend the 22seven Budgeting and Investing App to keep track of your finances.
The bigger picture?
Finance can seem like an intimidating topic reserved for the JSE elite. However, the average investor can often outperform industry insiders by taking a common sense approach. There are three essential activities the average investor must master to implement an effective personal finance regimen:
Following is a brief investigation of each component as well as helpful tools to assist in developing your own program.
The first component of a common sense personal finance program is budgeting, which involves the identification of goals, income streams, and expenses.
An extremely helpful website that can assist you in developing a practical budget is Platinum Wealth.
I have created a budgeting spreadsheet that you can download and use in your computer (use the transactions sheet to update vallues) My Budget Sheet
After developing a budget which includes an emergency fund, it is important that you find a safe, accessible vehicle for your short term savings. Below are some semi-liquid products that you should consider using:
Flexible savings account
High Yield Savings Accounts (Fixed)
Government Retail Bonds
For longer term and retirement goals, it is critical that you diversify your investments. Based on your goals, you can select products to meet your desired levels of risk and return. Below are some vehicles you can use to meet your investment needs: