Mi Gente, the numbers do not lie! Numbers are straight forward and provided the most unbiased picture.
Thousandaires, Hundredaires, Millionaires, Billionaires, do you know your net worth? How are you managing your present fortune? Are you preparing for your financial future? What is your exact net worth? When was the last time you made the calculation?
Taking the time to calculate your net worth will:
1. Assist in setting your financial goals
2. Spot where adjustments need to be made
3. Avoid making future mistakes
Net Worth Formula: Total Assets ( – ) Total Liabilities = Net Worth
To win the money game, have a high total asset number!
Sample Arbitrary Calculation:
Total in all checking and savings accounts $10,000
Total in all money-making accounts $5,000
Current value of all securities and investments $15,000
(include stocks, bonds, annuities, IRA, etc)
Current value of life insurance (cash value) $80,000
Current value of home $230,000
Current value of personal property $2,300
(include auto, rental property, collectibles, etc)
Total Assets (add all asset lines) $342,300
Home Mortgage (balance due) $150,000
Total balance due on credit cards $6,000
Total due on student loans $15,000
Total due on other loans $5,000
Total Liabilities (add all liability lines) $221,000
Net Worth (total assets – total liabilities) $121,300
Large corporations have a weekly read of their net worth. Individuals should calculate net worth quarterly, or before making large purchase decisions. The goal is not to become obsessed with net worth; or to draw assumptions on self-worth based on a subtraction formula. The goal is to be financially aware, in order to make the best financial decisions for your! Grab a pen and paper, or spreadsheet, and calculate your net worth, now!
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By Casandra Kate Escobar