Welcome to our Net Worth Calculator! It’s an excellent tool that allows you to compute your net worth, showing you the total value of your assets and liabilities. For more information on net worth, see our informative article below the calculator. Thanks!
What’s Your Net Worth – And Why Does it Matter?
Let’s say you want to track your financial health. How would you do so?
Net worth is a great measure of financial health because it takes into consideration your assets and liabilities. Keep in mind, it’s not the only measure, but it’s worthwhile to know.
Our Net Worth Calculator helps you to easily figure out your net worth and even breaks down the results. Simply enter your assets and liabilities, and the calculator will show you instant results. It’s a good idea to use this calculator at least once a year to track your financial progress.
Here’s what you need to know about your net worth . . . .
Net Worth: A Valuable Measure of Financial Health
Again, your net worth is a valuable measure of financial health because it accounts for assets (like real estate, investments, and personal property) and liabilities (like mortgages and other loans).
As you work through Phase I: The Foundation Phase, you’ll see your net worth go up in value. After all, you’ll be building an emergency fund and paying off consumer debt. This phase gets you moving in the right direction!
However, your net worth doesn’t tell the whole story. For example, financially healthy people have adequate insurance policies in place. But no worries, you’ll work on those in Phase I as well.
Building Positive Net Worth Momentum
You’ll find that having a net worth of zero is very unlikely. The reason for this is profound: the more debt you have, the more debt you’re likely to incur, and the more assets you have, the more assets you’re likely to accumulate.
There’s a natural momentum that builds the more assets you acquire or the more debt you acquire. Think about it. If you’re in debt, you already have the basic behaviors in place that lead you into debt. You’re likely to continue down that road. In the same way, if you’re regularly contributing to your retirement accounts or acquiring other assets, you’re moving in that direction.
Net worth hardly ever lingers at zero. You’re either progressing, or you’re moving backwards. Stagnation is hardly an option.
As you work through Phase I: The Foundation Phase and move into Phase II: The Accumulating Wealth Phase, you’ll find positive momentum building. Breaking the chains of debt liberates you to keep more of your money, pay off even more debt, or contribute more toward investments.
Break Down Your Net Worth Assets and Liabilities
By clicking the “Breakdowns” tab, you’ll see your assets and liabilities by type. This can show you ways you might pay off debt! For example, let’s say you have a lot of cash in the bank. Perhaps that could go toward your student loans? Or maybe you have some real estate you can sell at a profit and pay off your smaller mortgage.
The possibilities are endless. Just make sure you follow the Three Phases of Wealth!
It’s a fantastic idea to keep a record of your net worth over time. After a few years, you’ll be able to look back and find trends. Are you growing your net worth, or backsliding?
Take a few minutes and try out our Net Worth Calculator. It’ll get you thinking about your financial future, and that’s always a good thing.
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