The Financial Vital Sign Every Pharmacist Should Track

Do you know your net worth? And perhaps more importantly, are you tracking it over time?

I’ll never forget the first time I calculated mine. It was 2012, 4 years after finishing pharmacy school. My wife Jess and I were earning a solid income, working hard, and doing what we thought were the “right” financial things. But something felt off. We weren’t moving forward the way we expected. We were spinning our wheels. No major mistakes, but no real progress either.

So, one evening, I grabbed a sheet of paper, folded it in half, listed our assets on the left and liabilities on the right, and did the math. It took 5 minutes, and it changed everything.

Despite earning nearly $500,000 in income in the years after I graduated, our net worth was –$225,000. That moment became a pivot point. I had learned a lesson that I would only need to learn once: a 6-figure income does not equal financial success.

What matters far more than income is net worth: what you own (assets) minus what you owe (liabilities). It is the clearest picture of your financial health, and in my experience working with pharmacists across the country, it is one of the most underused tools in personal finance.

If you’re not already tracking your net worth, here are 4 reasons to start doing it monthly.

Reason No. 1: It Creates a Mindset Shift

In The Millionaire Next Door: The Surprising Secrets of America's Wealthy, Thomas Stanley wrote, “One of the reasons that millionaires are economically successful is that they think differently.”¹

Part of thinking differently is realizing that income is a tool, not a scorecard. Income can come in and go out just as quickly, but net worth measures what sticks. Tracking net worth shifts your focus from “How much did I make this month or year?” to “How much wealth am I actually building?” That mindset shift is where real progress begins.

Reason No. 2: It Builds Momentum (Even When Progress Feels Slow)

Every pharmacist will face seasons of financial grind, whether that’s paying off student loans, saving for a down payment on a home, catching up for retirement, or juggling childcare and career transitions. In those seasons, it can feel like you’re working hard without seeing results, but net worth tells a more complete story.

Even if your checking account feels tight, your student loan balance may be falling, your home equity rising, or your retirement portfolio increasing. Seeing those numbers trend upward provides motivation at the exact time it’s most needed.

Momentum matters. And tracking your net worth helps you feel it.

Reason No. 3: It Regrounds You to Your Financial Plan

Net worth acts as a monthly dashboard, your financial vitals check. It’s a clear picture of where you stand that helps you make better decisions. Sometimes it reveals the need for a course correction: tightening spending, adjusting savings, or reprioritizing goals. Other times, it gives you permission to loosen the reins and enjoy more of your life today because you can see the long-term trajectory is solid.

Just as pharmacists use laboratory results and vitals to guide clinical decisions, net worth keeps your financial decisions anchored to objective data.

Reason No. 4: It Reinforces the Difference Between Assets and Liabilities

Many of us were taught definitions of assets and liabilities, but tracking net worth brings those concepts into real life. You begin to experience what happens when you consistently invest in appreciating, compounding assets and minimize or appropriately leverage debt. You start to see the exponential growth curve that wealth can follow over time.

You also learn that not all assets are created equal. Two people can both have a $1 million net worth yet be in dramatically different financial positions depending on where those dollars live (eg, tax-deferred vs taxable accounts, equity vs cash, appreciating assets vs depreciating ones). Net worth tracking highlights not just how much wealth you have but what kind.

The Wake-Up Call and the Opportunity

When I calculated our negative net worth back in 2012, it was humbling. But it was also clarifying. It forced us to build a real plan, and it became the start of our journey toward financial freedom. Years later, that simple monthly habit remains one of the most powerful tools Jess and I use.

You don’t need a complicated system or a perfect spreadsheet. You need a snapshot that's consistently updated so you can see reality, measure progress, and stay aligned with the life you’re trying to build.

If you haven’t tracked your net worth before, start this month. Don’t wait for the perfect moment or the perfect system. Your income might look impressive, but your net worth is the vital sign that truly reflects your financial progress and health.

Do you have a question or topic you would like to see addressed in a future column? Send Tim an email at tulbrich@yourfinancialpharmacist.com.

Disclaimer: The information in this article is provided to you for your informational purposes only and is not intended to provide, and should not be relied on for, investment or any other advice. Read our full disclaimer at https://yourfinancialpharmacist.com/disclaimer/.

About the Author

Timothy Ulbrich, PharmD, is cofounder and CEO of Your Financial Pharmacist (YFP). Founded in 2015, YFP is on a mission to help pharmacists achieve financial freedom through fee-only, virtual comprehensive financial planning services. Learn more at yourfinancialpharmacist.com.

REFERENCE

Stanley TJ, Danko WD. The Millionaire Next Door: The Surprising Secrets of America’s Wealthy. Taylor Trade Publishing; 1996.