Your net worth can be an extremely useful tool in measuring your economic status and overall financial progress from year to year. Your net worth is essentially a grand total of all your assets minus your liabilities. In other words, your net worth is the figure you get when you add up everything you own and then subtract from that the value of all of your debts. Dustin R. Granger, CFP® and I have put together a simple tool that you can use to help you calculate your net worth!
Dustin R. Granger, CFP® and I have put together a simple tool that you can use to help you calculate your net worth! Check out this #WorthItpodcast episode to learn more! @Worthit_Podcast @DRGranger #worthitpodcast #networth #assets #Liabilities… Click To Tweet
Calculating your net worth can be a simple process, but it requires that you gather all the information surrounding your current assets and liabilities. Gathering and organizing this information can be a bit of a chore at first, but ensures that you (and anyone else who might need it like your spouse or financial advisor) have access to the information when needed. Calculating your net worth only requires basic financial information regarding the things you own and the debt that you owe. Here’s how to get started: Get Your Free Net Worth Calculator
You will want to gather your latest statements for your more liquid assets. These assets include checking and savings accounts, cash, CDs or other investments such as brokerage accounts or retirement accounts. Next, list your largest assets. For most people, this could include the value of their home, any real estate properties, or vehicles like personal cars or boats. In the case of a business owner, this list would also include the value of their business, which has its own more complicated calculation. Make sure you use accurate estimates of market values in current dollars. Now, take all of the assets you have listed in the first three steps and add them together. This number represents your total assets.
Are big are your assets? Are they increasing or decreasing? This is important information to know when creating a financial plan! @Worthit_Podcast @DRGranger #worthitpodcast #networth #assets #Liabilities Click To Tweet
Start with the major outstanding liabilities such as the balance on your mortgage or car loans. List these loans and their most current balances. Next, list all of your personal liabilities such as any balance on your credit cards, student loans, or any other debt you may owe. Now, add up the balances on all of the liabilities you listed above. This number represents your total liabilities.
To calculate your net worth, simply subtract the total liabilities from the total assets. For this exercise, it doesn’t matter how big or how small the number. It doesn’t necessarily matter if the number is negative. Your net worth is just a starting point to have something to compare against in the future. Repeat this process once a year and compare it with the previous year’s number. By comparing the two, you can then determine if you are making progress or getting further behind on your goals.
We’ve done the hard work for you, and created our own Net Worth Calculator so you can determine yours today. Because we know you like options, you’ll receive both an excel spreadsheet and a PDF to get the task done!
Your net worth is just a starting point to have something to compare against in the future. If you track this, you can then determine if you are making progress or getting further behind on your goals. @Worthit_Podcast @DRGranger #worthitpodcast… Click To Tweet
What if you had a clear formula to help you figure out how much to save… while paying down debt and enjoying life? It is possible… when you know your numbers.
Check the background of your financial professional on FINRA’s BrokerCheck.
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. Some of this material was developed and produced by Advisor Launchpad to provide information on a topic that may be of interest. Advisor Launchpad is not affiliated with the named representative, broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.
Copyright 2019 Advisor Launchpad.
Securities offered through LPL Financial. Member FINRA & SIPC. Advisory services offered through GWM Advisors, dba Toujours Planning, a registered investment advisor. GWM Advisors and Toujours Planning are separate entities from LPL Financial.
The LPL Financial representative associated with this website may discuss and/or transact securities business only with residents of the following states: AL, AR, CA, CO, DE, DC, FL, GA, ID, IN, LA, MI, MS, MO, OK, TX, VA.