Have you ever wanted to find out how financially fit you are? Or are you interested in your financial progress? Then maybe you should start by calculating your net worth. Your net worth statement is like the doctor’s diagnosis. It tells you how good or how messed up your finances are. You could be drowning in debts just as you could be wallowing in cash so much so that you could retire tomorrow but you may never find this out if you don’t calculate your net worth Bio
Net worth is actually your total assets minus your total liabilities. So then it would be the value of all you own such as houses, jewelry, cars, cash, bonds, shares, retirement accounts, minus your debts such as student loans, credit card debts, mortgages, car loans, other loans and debts.
Calculating your net worth isn’t that difficult. All you need to do is make two lists; on the first write down all you owe such as houses, valuable jewelry, cars, cash etc. On the second list write down all you owe, from credit card debts to loans etc. Then subtract what you owe from what you own.