One of the best ways to see how financially healthy you are is to calculate your net worth. You do this by preparing a personal statement of assets and liabilities.
This means determining the value of everything you own, getting the amount of all your debts, and then computing the difference between the two.
Your net worth is simply your assets minus your liabilities.
- It serves as a starting point on your financial journey. It tells you how far or how near you are to financial freedom.
- It helps you review all your accounts. There may be investments that you need to check up on and debts that you’ve been ignoring.
- By listing down all your debts and liabilities, you can allocate your budget more efficiently. You can determine which debts must be paid first and what liabilities you can possibly eliminate.
- By monitoring the value of your net worth regularly, you’ll have a realistic view of your financial progress. Every time your net worth goes up, you’ll feel great about yourself and be inspired to continue saving money and investing. If it goes down, it will challenge and motivate you to do better.
- Lastly, by knowing your overall financial status, you’ll have a good grasp of how much risk you can tolerate when buying investments.
- Cash on hand
- Current market value of properties
- Current market value of investments
- Credit Card Debts
- Housing Loans
- Student Loans
After this, the template will summarize everything to get your net worth.
It's simple assets minus liabilities.
Yes, once you've made your purchase, a link with be sent to you to duplicate this to your Notion workspace.
No, this is a personal license for individual use.
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