top of page
Search

How to track your progress with Wealth?

Calculating your net worth is a useful way to gauge your financial health and track your progress toward your financial goals. Your net worth is essentially the difference between what you own (your assets) and what you owe (your liabilities). Here's how you can calculate it:

how to gauge progress with wealth
How to calculate your net worth?

ย 

list all your assets
How to calculate your net worth?

STEP 1. ๐Ÿ“ **List Your Assets**: Start by making a list of all your assets. Assets are things you own that have monetary value. Common assets include:

๐Ÿ’ฐ Cash on hand and at the bank, the toal value of your investment portfolio, including stocks, bonds, mutual funds, and retirement accounts like 401(k)s and IRAs. ๐Ÿก Also include Real Estate, ๐Ÿš— cars, motorcycles, boats, or any other vehicles you own. If you own valuable articles such ๐Ÿ’Ž jewelry, art, antiques, and collectibles, add them to the list as well. ๐Ÿข Self employed individuals should also add the value of their shares in the business.

ย 

List all your liabilities
How to calculate your net worth?


STEP 2. ๐Ÿ“ **List Your Liabilities**: Next, list all your liabilities. Liabilities are debts and financial obligations you owe. Common liabilities include:

๐Ÿ  Mortgages balances, ๐Ÿš— outstanding balance on any car loans,๐Ÿ“š student loans, ๐Ÿ’ณ The total amount of credit card debt you owe,๐Ÿ’ธ Any other personal loans or debts you may have ๐Ÿ’ผ or any other financial commitments.


ย 

Subtract liabilities from assets
How to calculate your net worth?

STEP 3. ๐Ÿ’ฐ **Calculate Your Net Worth**: To calculate your net worth, subtract your total liabilities from your total assets:

๐Ÿ“Š Net Worth = Total Assets - Total Liabilities


Your net worth can be positive, negative, or zero. A positive net worth means that your assets exceed your liabilities, which is typically a healthy financial position. A negative net worth means you owe more than you own, which indicates financial trouble. Zero net worth means your assets and liabilities are equal.

It's important to regularly update your net worth calculation as your financial situation changes. Tracking your net worth over time can help you monitor your progress toward financial goals and make informed financial decisions. ๐Ÿ“ˆ๐Ÿ’ฐ๐ŸŽฏ

We also offer a free online tool which lets you calculate your net worth by just listing your accounts. Sign up today at bit.ly/Plan2day


1 view0 comments

Recent Posts

See All
bottom of page