What is net worth?
You’ve probably heard people talk about net worth, but what is net worth? And do you know your net worth?
When people talk about their net worth they are usually talking about how much money they have, but it’s not as simple as how much money you have in the bank. It’s a calculation based on your assets and debt.
Net worth is an important measure of your financial situation, and it is something that you can easily be made aware of.
Like knowing your credit score, knowing your net worth will help you decide which steps you need to take to improve your financial situation.
We often hear wealthy people talk about net worth, but it’s important for everyone to understand what the concept is, whether your net worth is positive or negative. Fortunately, discovering your net worth is fairly easy to do!
Today, I will explain the simple steps it takes to calculate and track your net worth. Remember, it’s just one more way to gauge your financial health and progress.
There have been many times when someone has told me that they have no idea how much debt they have, how much money they have saved, what their assets are worth, and so on.
While you don’t always need to know an exact number, it’s usually wise to have a general idea.
Understanding what net worth means and how it affects you is important.
If you’ve never calculated your net worth, it might be negative or lower than you expect, but the key is knowing what it is and to note how it changes over the months and years. Knowing it is one of the first steps to improving your financial situation! [Read more…]