How many assets, versus liabilities do you have? Here’s what to know.
Having a healthy financial picture is super important, especially if you want your net worth to be going up, not down.
Up until several years ago, I had a negative net worth. Nothing woke me up more than realizing I had almost nothing but debt to show for my years of working so far.
I was going in the opposite direction, and I was not cool with it.
It took me a few hours, but I basically had to look up every account I had, and see how much money I owed altogether.
I had a little cash and some in a retirement account, which counted as assets, but other than that I owed much more.
It might not always be pretty, but knowing where you’re at, is going to help direct your future.
So how do you calculate your net worth?
You add up everything you OWN outright—like a car, money in retirement accounts, any equity in your house, and anything worth of value—a boat, cash in savings, etc. and subtract everything you OWE.
So if you still have student loans, credit cards, health bills or money owed on your house, you subtract that from your total. And that’s your net worth.
Drop a ? if this was helpful and let me know if you have any questions.