Calculate your net worth

Published: Dec. 27, 2021 at 2:01 AM EST|Updated: Dec. 27, 2021 at 8:48 AM EST
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RICHMOND, Va. (WWBT) - A good way to get ready for the new year and figure out where you are financially-- is to look at your net worth.

Net worth is the value of your assets minus your liabilities. Or more simply, what you own or have --minus what you owe.

Add up all the things you own-- money-wise. Your 401K, IRAs, equity in your house can count toward your net worth. Your savings accounts-- and any stocks and bonds. Then you subtract all your debt, like credit cards, and what you owe on your house.

Cherry Dale a financial coach with the Virginia Credit Union says it can be a little depressing at first-- most of us will be in the negative...

”That’s ok. if you just start. Even if your net worth is negative, it’s a starting point, and what that will do is it will give you a place where you can move forward. even if you are at negative net worth,” Dale said.

If you make it a goal, and start putting more in a savings account or in your 401K - you’ll start to see that net worth number change in the other direction.

Keeping track of your net worth twice a year will help motivate you to stay focused on your financial goals.

Copyright 2021 WWBT. All rights reserved.

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