Your Net Worth is the total value of all your assets minus your liabilities. To determine your net worth, follow these steps:-
1] List all your Assets:- This includes cash, savings accounts, investment accounts, real estate, and any other valuable items you own .
2] Determine the value of each Asset:- Calculate the current value of each asset by looking at recent market values, or by consulting an expert in the case of real estate or valuable items.
3] List your Liabilities:- This includes Debts such as mortgages, car loans, credit card balances, and student loans.
4]Determine the value of each Liability:- Calculate the total amount owed on each Liability.
5] Subtract your Liabilities from your Assets:- The difference is your Net Worth.
By regularly determining your Net Worth, you can track your Financial progress and make changes to improve it if necessary. It’s a useful tool for managing your Personal Finances and making informed decisions about your future.