The Worth of Net Worth

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My Dad, Mom, brother and I sat huddled around the TV eagerly waiting for #23 to sail through the air and land one of his amazing slam dunks into the hoop. We cheered him on from our comfy living room when he defied gravity in style.

Stars. We all have our favorites. Maybe yours is a singer, actor or other sports player. We often follow their career, schedule, lifestyle and net worth.

The funny thing is we often know their net worth but don’t know our own net worth!

 

Everyone has a net worth. A total amount of assets completely owned. This does not included things you have but owe money on to the bank. For example, car loans, home mortgage, school loans. Those debts diminish your net worth . 

You might have a really firm grasp on your budget, you might be fully aware of where your money is going each month through your budgeting but if you don’t know what your net worth is you are putting yourself at a serious disadvantage. 

Why? 

Because you are more likely to allow your financial life to continue being mediocre. 

When you know what your net worth number is you will suddenly want to see that become a healthy number. 

Debt will become a greater burden to you and you will become more focused on eliminating it from your life. 

You will see the importance of investing wisely and hopefully begin learning more about how to invest. 

Knowing your net worth number is very easy to do with my favorite free tool from Personal Capital.
This is what I did and you can easily do this with your free account.  

  1. Sign up for your free account. 
  2. Connect all your accounts. Don’t leave any out or your will not receive an accurate picture of your situation when your are complete. 
  3. View your Dashboard for the magic number. 
  4. Evaluate where you are in your current financial life based on this new information. 
  5. Select a pretty piece of stationary . { I have this thing for beautiful stationary. }Now write down your new goals. This is your most critical step. If you change nothing in your income or spending habits your net worth with remain essential the same. 

Have you ever given your net worth a serious thought? If you found this helpful please help me out by clicking on the social buttons to the left of this post and share it! I’m a new blog and you would be helping me out so much! Thank you!