Each month I produce a net wealth report, detailing our family income and expenses for the month, as well as movements in our net worth.

Couple of points on these reports. I’m an accountant by background and hence to me (and hopefully you), there is a difference between cash flows and other movements. By that I mean, if the value of my stocks goes by 5%, then I have a higher net worth but didn’t generate any additional cash flows. To me, cash is important because it’s what we use to pay the bills. But its not the only measure. Therefore I show both.