Don’t forget to check in on your net worth
RICHMOND, Va. (WWBT) - It’s helpful to know your net worth, especially if you’re planning to apply for loans, lines of credit, or other financings.
Your net worth also changes over time, which is why Michael Joyce with the financial firm Agili says it’s good to check in on it once or twice a year.
“Businesses and corporations, use balance sheets as a basis for making financial decisions, and individuals probably should do so as well. It’s a net worth statement. It’s not really that hard to figure out,” said Joyce.
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, and equity in your house can count toward your net worth. Your savings accounts - and any stocks and bonds.
Then, you subtract all your debt! Credit cards or what you owe on your house.
It can be a little depressing at first - most of us will be in the negative, but it’s also a starting point. It will help motivate you to stay focused on your financial goals.
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