Why You Should Calculate Your Net Worth and Check It Regularly
Your net worth is a yardstick for your financial progress and is more important than your income . Simple Dollar explains how you can use this number to track and improve your finances.
Your net worth is simply your assets (eg, savings and investments) minus your liabilities (debts), but the best calculation uses “useful” assets, that is, do not include the market value of your home or car if you are not going to sell now.
Once you’ve found that number, there are tons of things you can learn from it, provided you keep track of your net worth on a regular basis, The Simple Dollar indicates: things like whether any movement you make is a bad financial move (for example, lending money to people who won’t pay you lowers your net worth), are you really making progress financially, and whether the extra time you work really pays off.
Check out the article below for some additional calculations to keep in mind to track your progress.
The most important number | Simple dollar