What is net worth and, why should you track yours? Have you been troubled about your worth calculation? It’s actually a great idea knowing your net worth as it has a lot to do on your financial life.
Net worth is the value of everything you own, both your financial and non-financial assets, minus obligations and liabilities. It’s obvious that the net worth is an indicator that would point out the maltreatment you must have given your finances. Net worth stands as a measurement of wealth. Your liquid net worth is what you’ve got left after deducting your liabilities from your total assets. Liquid net worth may either be positive or negative. A negative net worth refers to the fact that your debts are more than the assets. The advantages of knowing your net worth are obviously unveiled. Now, let’s go into hoe to monitor your net worth to get everything positive.
Ø Always get a net worth statement. It may be gotten online using Personal Capital Calculation.
Ø List your assets and liabilities.
Ø Monitor your spending.
Ø Focus on what would improve your long-term wealth rather than destroy it.
WHY YOU SHOULD KNOW YOUR NET WORTH
· Key benchmark
· Help you set financial goals
· Track progress
· Pay off debt
· Get a good credit score
· Refinance your mortgage debts
· Build assets and accrue wealth
10 WAYS TO INCREASE YOUR NET WORTH
Building your net worth is truly the path to financial freedom. Boost your income and assets with these tried-and-true formulae;
o Pay off credit card debts.
o Build an emergency fund.
o Max out retirement contributions.
o Live below your means by trimming your expenses.
o Pay yourself first & invest in yourself.
o Know the difference between earning, savings and investment.
o Invest in places where your money would grow.
o Find new sources of income.
o Review your assets.
o Get financial advise where needed.
Thanks for staying with us till the end of this bout. Check our trending posts for more value-dispensing posts Thanks to y’all.
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