How to Track Your Path to FI in 2026 (Step-by-Step Guide)

What It Covers

Scott Trench and Mindy Jensen walk through their free personal financial statement spreadsheet that tracks net worth, cash flow, assets, and liabilities in one comprehensive document available at biggerpocketsmoney.com/resources.

Key Questions Answered

• •Asset categorization framework: Separate personal property (primary residence, vehicles) from liquid financial portfolio (stocks, bonds, retirement accounts) and illiquid investments (rental properties, private equity) to accurately measure progress toward financial independence rather than conflating all net worth together.
• •Savings rate calculation method: Calculate true savings rate by subtracting all dollars spent from all dollars saved, including pretax 401k contributions and employer matches. The spreadsheet includes a tax liability calculator to account for the circularity where reducing 401k contributions increases tax burden and lowers overall savings rate.
• •Rental property evaluation matrix: Track seven key metrics per property including value, mortgage balance, rent, expenses, and cash flow, plus two qualitative measures: annoyance factor and future prospects on a one-to-three scale. This simple framework helps identify which properties to keep or sell without complex software.
• •Complete financial snapshot components: A proper personal financial statement requires four sections: balance sheet with assets and liabilities, income and expenses with tax calculations, optional debt schedule showing balances and interest rates, and other assets like pensions or Social Security with liquidity and confidence ratings.