I recently calculated my net worth and found it to be a very interesting and valuable exercise. So what exactly is Net worth?
Your net worth is essentially a grand total of all your assets minus your liabilities. It gives you a clear picture about where do you stand financially. Overtime your net worth should increase.
So why is it important to track your net worth? Below are my five reasons to track it,
Reality check: It gives you a reality check of where you stand financially (for better or for worse).
Goal setting: Once you know where you stand you can create a realistic goal and strive to achieve that. This is better than setting an arbitrary goal like becoming a millionaire one day.
Makes you money smart: Once you realize the simple fact that expenses decrease your net worth and income/investments increase your net worth you will start taking steps appropriately to increase your net worth. It is similar to checking your weight. It is psychological more than anything. Whenever I check my weight and I know it is more than I expected, I take better care in eating that day. 
Easy: It is easy. Once you create a template, every month you have to just go in and enter values into the template. It should not take you more than 10 minutes.
Helps evaluate your financial decisions: If you track net worth over regular periods(months, quarters or years) it will give you a good idea about how your financial decisions are affecting your bottom line. I plan to track my net worth every month.
How do I track mine
I use a really simple excel sheet with some formulas. In the excel sheet,
I have an assets section which contains,
