When last did you Calculate your Networth?

The New Year is a good time to determine what you are worth financially… 

in 3 simple steps: 

1 Calculating your net worth as a key step to assessing your financial health and wellbeing. It is as simple as adding up your assets, that is, what you own, and your liabilities, what you owe. 

2 Under assets, list everything you own with conservative estimates of its value: cash, savings and money market accounts, mutual funds, investment portfolio, pension fund, cars, artwork, jewelry, your home and other real property, and other things of value such as musical instruments, sports equipment etc. Your #liabilities include what you owe: debts such as a car loan, credit card balances, loans from friends and family, student loans, your mortgage and so on.

 

3 Add up your total assets and subtract your total liabilities from this number to find your net worth. Ideally you want that number to be positive and growing. 

If it isn’t, and indeed, if it is falling, that should be a red flag; an indication that all is not well and you do need to pay greater attention to your #expenses and liabilities and seek to increase your #assets. 

Let’s get started! #mmwithnimi #financialsecurity