Your net worth is something that tells the value of your hard work. It is all about your assets and liabilities, and it tells you where you currently stand financially. Knowing your net worth is important, especially if you are planning to expand your wealth.
More importantly, the knowledge you have about your wealth will help you come up with more comprehensive wills, as pointed out by feldmanlee.com and other law offices specializing in wills and estates.
If you want to learn more about calculating your net worth, here are some of the basics that you should take note of.
List all your assets
This is the first thing to do: List down all the assets to grasp how big your wealth is. This should include all the tangible and intangible ones. List down our cars, real estate properties, businesses, stocks, bonds, and other equities. Don’t forget your other investment pieces, such as art, antiques, and other collections. Include those that you have abroad, and make sure that these assets are valued based on the current market value.
List down all your liabilities
After listing down all your assets, it is time to list down all your liabilities. These include all your debts, such as business loans, credit card debts, mortgages, and even the loan you use for buying a car or house.
Once you have listed down all your assets and liabilities, it’s now time to make a computation. What you need to do at this point is subtract your liabilities from the assets. The answer will be your net worth. You can do this procedure every year to track your wealth progress and manage your debt properly.
These are just some of the things to do when calculating your net worth. Seek the advice of a reliable wealth management specialist to learn more.