FINANCIAL MASTERY
01
DO YOU KNOW WHAT YOUR NET WORTH IS?
SSECCUS ROF SDEES
16/47
Do you know what your net worth is, and do you know why you should care? If you are like most people, you don't really know what your net worth is. In fact, not too many people seem to have the time or the interest to know what their net worth is - how to calculate it and the benefit that comes with the knowledge. So, if you don't know what your net worth is, now is the time to find out. Why? Because net worth is a very important indicator of your financial situation at the present point in time, and it is something you should be aware of when you're thinking about creating the life you desire. Since everyone's situations are different, you will need to ascertain how much money you must have each year to fund your lifestyle. Having the big picture of your net worth allows you to gain insight into your financial health. It opens up awareness in every area of your life. Through looking at your current net worth, you can identify the serious red flags in your assets and liabilities. Net worth is calculated by subtracting your liabilities from your assets. In simple terms, net worth is the difference between what you own and what you owe. Depending on your finances, the resulting figure can be positive or negative. A negative net worth — when you have more liabilities than assets, can be the wake-up call you need to make some serious financial adjustments. This provides a wakeup call that you are not on track. A negative net worth can clearly highlight where you may be over-leveraged, that you have more liabilities than assets you can sell to pay them off.
