Hello All,

As you probably know, outlining your net worth can be an useful way of tracking your overall financial picture. A couple of years ago we decided to make a simple chart showing our overall level of net worth. It is shown here because it illustrates a couple of important points about personal finance. So, briefly:

1) Keeping Track Makes The Process Real: As you can tell from the chart below, our financial growth has been about $50,000 a year. While this is not a lot, it does indicate that saving and investing in real estate and stocks is an effective method of building wealth. This is important because it is quite one thing to read about money in a book and another to see it working in real life for you personally. Graphing makes the saving and investing processes real because you can see your wealth increase or decrease.

2) Keeping Track Helps To Determine What Works: You cannot tell from the graph below, but the DINKs bottom line growth has been due partly to stocks and good debt management. For example at the end of 2007, the graph was flat lining so we started putting money into income stocks and maxing out Miel’s 401k. Interestingly enough, August of 06′ was the time we realized our adjustable rate mortgages were impacting us. By adding up the new worth figures we knew that Washington Mutual’s monthly $50-100 increase in ARM payments was eating our lunch. While these may seem like common sense, the processes of doing the net worth calculations greatly illustrated what was helping or hindering the wealth building processes.

MANAGE YOUR MONEY TOGETHER

Here are some simple guidelines for DINKS to build wealth:

1) Collaborate: Meet regularly to talk about money, set goals together, track and monitor them.

2) Understand and respect your partner. Take time to understand your partners values about money.

3) Watch the numbers. Get a budget, monitor your spending and track your net worth.

4) Max your retirement. Maximize contributions to your tax deferred retirement accounts.

5) Invest in stock. Stocks perform better than bonds or cash.

6) Avoid high interest debt. Credit cards and title loans are financial cancer.

7) Diversify. Don't put all your eggs in one basket.

Couples Finance

Blogs You Should Read

Companies Supporting The DINKS

Please consider visiting our gracious supporters:

Get an education with the Online Certificate Programs at Washington Tech

7binaryoptions.com: Your one stop information source for trading binary options.

Get the Latest Coupon and Discount Codes at Freecouponcodes.net.

The best cheap web traffic that comes in handy for your website traffic needs.

Shop till you drop and discounted offers with Shopee promo codes.