Determining the Value of your Assets involves understanding the worth of each item you own. There are several methods to estimate the value of assets, including:–
1] Appraisal:- Hiring a Professional appraiser to assess the value of valuable assets, such as real estate, artwork, or jewellery, is one way to determine the worth of your assets.
2] Market Value:- The Market value of an asset is what it would sell for in the open market. You can determine the market value of your assets by researching similar items and their sale prices.
3] Cost Basis:- The Cost Basis is the original cost of an asset, including any improvements or additions, adjusted for inflation.
4] Depreciation:- Depreciation is a method used to calculate the Value of Assets over time based on their expected useful life.
5] Net Worth:- Your Net Worth is the total value of your Assets minus your liabilities, such as Loans and Debts.
It’s Important to regularly review the value of your Assets, as their worth may change over time due to various factors, such as market conditions, inflation, or improvements to the Assets.
In Short, Determining the value of your assets requires understanding the worth of each item you own and using various methods, such as appraisal, market value, cost basis, depreciation, and net worth calculation, to estimate the value. It’s Important to regularly review the value of your assets to keep track of any changes.