Tracking your net worth as a real estate investor can help you make informed financial decisions. It will help you clearly understand your current financial position to see if you are reaching your goals. It can also help you stay motivated as you track your progress in building your real estate portfolio.
A popular net worth tracker that many investors have relied upon is Mint. Unfortunately, Mint is going away. It will soon become part of Intuit Credit Karma.
However, the end of Mint doesn’t mean you no longer have a handy tool you can use for budgeting and other financial tasks. You can use several great alternatives to track your net worth in 2024.
What Is a Net Worth Tracker?
A net worth tracker is a web-based or mobile application that tracks your assets and liabilities. It’s a valuable tool to help you know if you are building wealth and progressing toward your financial goals. Net worth trackers are valuable tools that real estate investors can use to evaluate their financial positions.
Your net worth is a value, or dollar amount, that includes all of your assets and liabilities. Someone might say, for example, that “she has a net worth of $3 million.” It’s also possible to have a negative net worth, which means your liabilities are greater than your assets.
Examples of assets that may be included in your net worth include:
- Business interests
- Cash and savings
- Personal property
- Real estate
- Retirement savings
Examples of liabilities that may be included in your net worth include:
- Credit card debt
- Medical bills
- Personal loans
- Student loan debt
- Vehicle payments
Net worth is very easy to calculate: You add up all your assets and subtract your liabilities.
The net worth formula is:
Net worth = Total assets – total liabilities
How to Select a Net Worth Tracker
You can choose from several net worth trackers to help you monitor your financial position. Before you select one, however, it’s important to assess the features and cost to make sure you choose the best one for your needs.
Here are several things to consider when evaluating net worth trackers:
- Features and functionality: Some apps are very basic, while others offer more functionality. Apps that do more aren’t necessarily better, however. An app may offer more features than you need, which could overwhelm you and be frustrating to use. An app with more features may also cost more.
- Ease of use: Some net worth trackers may be easier to use than others. Some apps connect with your financial accounts and automatically calculate your net worth. Others require a more hands-on approach. They may require you to manually enter your financial data and calculate your net worth.
- Customization: If your finances are complex, you may need an app that allows you to customize your asset and liability categories and other information to help you keep up with everything.
- Security: The net worth tracker you select must ensure your financial data is secure. If you connect your bank and other financial accounts, the connection should be encrypted. Two-factor authentication may also help to prevent unauthorized access to your information.
- Accessibility: Do you prefer to access your account with a web browser, or do you mostly use a mobile device? Some net worth trackers offer only one option, so ensure you can access your account with your preferred device.
- Cost: Some net worth trackers are free, while others charge a monthly or annual fee. The free apps usually provide less functionality than the paid ones.
- Reviews: Be sure to read online reviews before making a decision. An online review may reveal information you hadn’t considered about a tracker or couldn’t find anywhere else.
Best Tools to Track Net Worth
Tracking your net worth doesn’t have to be complicated. You don’t have to keep a detailed spreadsheet or a notebook that you must constantly update. You can use one of several budgeting apps to simplify the process and give you current information.
Here are 10 of the best apps you can use to track your net worth in 2024. Some have built-in net worth trackers, while others can be used to track your financial information to make it easy to quickly calculate your net worth.
What makes it unique: Empower is a budgeting app with a built-in net worth tracker. You can link your bank and other financial accounts to get your current net worth.
The Empower app is also a useful budgeting tool. You can use it to create a budget, set goals, track your spending, and monitor your progress toward achieving your goals.
Why investors should use it: Empower can be used by real estate investors to track rental incomes. It can also be used to track and pay mortgages, taxes, insurance, and other expenses.
How to get it: The Empower app is available from the App Store for iOS devices or Google Play for Android devices.
What makes it unique: The Goodbudget app uses the popular envelope budgeting system, which allocates portions of your monthly income to virtual envelopes, or expense categories, like groceries, gas, debt payoff, etc. It’s a handy way to track your expenses, which is helpful in determining your net worth.
The app also has a feature that allows you to sync your data with others in your household so they can help you stay motivated in achieving your goals. Goodbudget does not connect with your financial accounts, so you must enter your financial information manually.
Why investors should use it: Goodbudget can be used to track property-related expenses. It can also be used to track various sources of rental income to help you manage your cash flow.
How to get it: Goodbudget is available from the App Store for iOS devices and Google Play for Android devices.
Cost: Goodbudget offers a free plan with 10 regular envelopes, 10 “more” envelopes, one year of history, and debt tracking. You get one account with the free plan that can be used with two devices.
The Plus plan is $8 per month or $70 annually. It gives you unlimited regular envelopes and unlimited “more” envelopes. It also includes debt tracking and seven years of history. You get unlimited accounts with the Plus plan that can be used with five devices.
What makes it unique: PocketSmith is a feature-rich financial platform that lets you create budgets, monitor your spending, and schedule bill payments. It can also help you forecast your cash flow. The PocketSmith dashboard displays your current net worth.
With the premium version, PocketSmith can connect with over 12,000 financial institutions worldwide to automatically import your financial information. You can also track your assets and liabilities in different currencies.
Why investors should use it: With PocketSmith, you can track multiple income streams, which makes it ideal for real estate investors. It also has a built-in feature to track Airbnb income and expenses.
How to get it: You can access PocketSmith from any web browser or the PocketSmith app, which is available in the App Store for iOS devices or Google Play for Android devices.
Cost: PocketSmith offers four plans, depending on the features you need. There is a free plan with limited features; the most expensive plan is $319.92 annually or $39.95 monthly.
What makes it unique: Kubera is a simple-to-use platform specifically tracking your net worth. It can also be used to make net worth comparisons at various points and to project your future net worth.
Why investors should use it: Because Kubera allows you to track all of your assets—including real estate, stocks, precious metals, and other investments—it gives you a complete picture of your current net worth. When you connect your bank, brokerage, and other investment accounts, information is updated automatically. Over 20,000 financial institutions are supported.
How to get it: Kubera can be accessed with any web browser or the Kubera app, which is available for iOS and Android devices.
Cost: Kubera is $150 per year for individuals and $225 per year for families. A 14-day trial is available for $1.
What makes it unique: Tiller is a budgeting platform that allows you to automatically track all your finances in one place, create a budget, and plan for the future. Totals for your current assets, liabilities, and net worth are displayed on the dashboard. You can also connect your bank accounts to import your financial information.
Tiller uses spreadsheets to track your finances, although you don’t need to be a spreadsheet expert to use it. Premade spreadsheet templates are available to simplify things.
Why investors should use it: Tiller can be used to track investment income and expenses. It can also be used to track goals. Because the app is highly customizable, spreadsheets can be tailored to your specific needs.
How to get it: Tiller can be accessed with any web browser.
Cost: A free 30-day trial is offered. After that, it’s $79 per year.
What makes it unique: Betterment is an investing platform that provides automated recommendations based on your information. It’s also a great way to keep up with your net worth, which is displayed on the app’s dashboard. Betterment connects with your bank accounts to display current financial information.
Why investors should use it: Betterment’s primary focus is investing for retirement, saving for the future, and investing in stocks, bonds, and crypto.
How to get it: Betterment can be accessed with any web browser or by using the Betterment app, which is available for both iOS and Android devices.
Cost: Betterment offers free checking and high-yield cash accounts for your savings. If you are using the platform to trade crypto, a fee of 1% is charged per transaction. If you use it for stock and bond investing, there is either a $4-per-month fee or a 0.25% annual fee.
What makes it unique: PocketGuard is a comprehensive finance app that allows you to monitor your net worth, watch your cash flow, and track all of your recurring expenses. You can also use it to create a budget and track your progress as you reach milestones.
PocketGuard connects with your bank and other financial accounts for real-time data. A fraud detection feature also alerts your bank when it detects suspicious activity.
Why investors should use it: PocketGuard can be used by investors to categorize and track expenses. It also provides insights into your cash flow to help you make sure you have sufficient funds to cover your expenses.
How to get it: The PocketGuard app is available for both iOS devices in the App Store and Android devices in Google Play.
Cost: A free plan is offered with basic budgeting features. A premium plan is also available with advanced features for $7.99 per month or $34.99 per year. A lifetime plan is also available for a one-time payment of $79.99.
8. Monarch Money
What makes it unique: Keeping up with your net worth with Monarch Money is very easy, since you can view the information right on the dashboard. You can connect your bank and other financial accounts for real-time data to help you manage your money. You can also set financial goals and track your progress.
Why investors should use it: Monarch Money lets you view all your investments in one place and track their performance over time.
How to get it: Monarch Money can be accessed with any web browser or the Monarch Money app, which is available for iOS and Android devices.
Cost: A free seven-day trial is offered. After that, you can choose from either monthly or annual billing. The service is $14.99 per month or $99.99 annually.
What makes it unique: The You Need a Budget (YNAB) app uses a zero-based budgeting system, where you allocate your money to different categories. The idea is to ensure every dollar you earn has a job to help you stay within your budget.
YNAB can connect to your bank and other financial accounts, and your information is automatically imported, which helps you determine your net worth. YNAB also offers a variety of educational resources like online workshops, videos, articles, and a forum to increase your financial knowledge.
Why investors should use it: YNAB can be used by real estate investors to track their expenses—such as mortgage payments, maintenance costs, insurance, property taxes, and other things—to keep a close watch on their cash flow. Investment goals can also be tracked.
How to get it: YNAB is available from either the App Store for iOS devices or Google Play for Android devices.
Cost: YNAB offers a free 34-day trial. After that, you can choose a $99 annual or $14.99 monthly plan.
What makes it unique: EveryDollar is a simple app that allows you to create a budget and set goals. You can connect your bank account to monitor your expenses and check your balances. Although the app does not track your net worth, you can use it to organize your financial information to help you quickly determine your net worth.
Why investors should use it: EveryDollar can be used to categorize and track your expenses. It can also be used to monitor your cash flow and to establish and track investment goals.
How to get it: EveryDollar can be accessed with any web browser. A mobile app is also available for iOS devices in the App Store and Android devices in Google Play.
Cost: A free version is available that offers basic budgeting tools. The free version doesn’t connect with your bank accounts. A premium version offers more features for $17.99 per month or $79.99 per year. There is a 14-day free trial for the premium version.
Ways to Increase Your Net Worth
With careful planning, you can increase your net worth over time. A higher net worth may make obtaining new mortgages easier to help you grow your investing portfolio.
Here are some strategies you can use:
- Pay down debt: The less debt you have, the higher your net worth will be. Consider using the snowball method to help you eliminate debt. With this strategy, you start with your smallest amount of debt and then move to your next smallest amount of debt. You continue the process until all of your debts are paid off.
- Diversify investments: Spreading your risk by investing in different property types may protect you if something happens. Instead of only buying single-family homes, for example, you could invest in multifamily homes, self-storage facilities, and mobile homes. You could also diversify your properties with a mix of long- and short-term rentals.
- Increase your income: The more you earn, the easier it will be to increase your net worth. Look for opportunities to increase your income, like a higher-paying job, a side hustle, a new business venture, a new real estate investment, or something else.
- Avoid lifestyle inflation: As your income increases, you may be tempted to upgrade your lifestyle, but not everything you buy will increase your net worth. You can increase your net worth by investing in assets that appreciate instead of spending your money on vacations, expensive vehicles, designer clothes, and other luxuries.
- Cut unnecessary expenses: Many people spend more than they realize on daily expenses like eating out, buying coffee and snacks, unused subscriptions, and other things. A simple way to identify unnecessary expenses is to track your spending for a month. Write down every purchase you make. At the end of the month, look for things you can either cut back on or eliminate.
- Take advantage of tax deductions: The less you pay on taxes, the more you will have to invest in new properties. Be sure to use a CPA each year to prepare your taxes for you. A good CPA will identify legal deductions you can take to minimize your tax obligation.
- Contribute to retirement accounts: Regularly contributing to your retirement account will steadily increase your net worth. Be sure to max out your contributions if you work for a company that offers 401(k) matching. It’s essentially free money that you can use to help you grow your net worth and prepare for the future.
- Buy assets that appreciate: Not all assets increase in value over time. Some assets, like vehicles, usually go down in value. Investing your money in assets that increase in value, like real estate, will help you grow your net worth on autopilot.
Tracking Net Worth as an Investor
As a real estate investor, it’s important to track your net worth to help you make informed decisions and evaluate the appreciation of your properties. It will also help you know if you are progressing toward your investing goals.
By using a web or mobile application to track your net worth, you can automate the calculation to get current net worth information. Instead of tracking your assets and liabilities on a spreadsheet or paper, an app can also help you stay organized. It will save you a lot of valuable time so you can concentrate on growing your investment portfolio instead of crunching numbers.
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Note By BiggerPockets: These are opinions written by the author and do not necessarily represent the opinions of BiggerPockets.