How to Track Your Wealth Growth

It is not enough to look only at the total net worth number. For a complete picture, track these metrics:

Total net worth: The main metric. Add all assets and subtract all liabilities. Track monthly.

Monthly/annual growth rate: How much your net worth grew in percentage terms. This shows whether you are accelerating or decelerating.

Savings rate: What percentage of your income you are investing. Ideally above 20%, but any amount above zero is a start.

Asset composition: How your wealth is distributed across classes (fixed income, stocks, real estate, etc.). This reveals your level of diversification.

Liability-to-asset ratio: How much your obligations represent relative to your assets. Ideally, this ratio should decrease over time.

PaxMoney calculates and displays all these metrics automatically on the dashboard, with time-evolution charts.

Monthly spreadsheet: The most basic method. Create a spreadsheet with columns for each asset class and liability. Update on the first day of each month. It works but requires discipline and is error-prone.

Complete finance app: The most efficient way. PaxMoney consolidates all your accounts, investments, and debts in a single dashboard. With support for 12+ currencies and AI document import, you keep everything updated with minimal effort.

Monthly review: Set aside 30 minutes at the end of each month to review your net worth. Note what changed, why, and what you plan to do differently next month.

Quarterly review: Every three months, do a deeper analysis. Review your asset allocation, rebalance if needed, and assess whether you are on pace with your goals.

Annual review: Once a year, do a complete assessment. Compare with the previous year, celebrate achievements, and set new goals.

Goals transform wealth tracking into something motivating and purposeful:

Short-term goals (1 year): "Increase my net worth by 15%" or "Eliminate all credit card debt."

Medium-term goals (3-5 years): "Accumulate $200,000 in investments" or "Buy a property with a 30% down payment."

Long-term goals (10+ years): "Reach $1 million in net worth" or "Have enough passive income to cover all expenses."

Use the SMART method: Your goals should be Specific, Measurable, Achievable, Relevant, and Time-bound.

Break into smaller milestones: A goal of $1 million in 10 years may seem impossible. But $5,000 per month invested at 10% annually gets you there. Celebrate each milestone — $100,000, $250,000, $500,000.