Getting, staying and living debt free can be an enigma for most. But have you ever really asked yourself, “what is my net worth?” It’s an important question to consider, especially when you’re looking for ways to pay off lingering debts and obligations.
Detailed below is a basic structure for you to begin adding up your net worth, and create a ledger to track it.
Assets: What is the value of all of your money, assets, and other holdings? Stocks, bonds, real estate, vehicles, boats, rental properties, and on down the list. If you add up the total of all of these things, this the assets portion of your spreadsheet.
Debts: How are your debts? How much money do you owe? Not just credit cards and car loans, but your home mortgage, department store credit cards, personal loans, student loans and anything else attached to your name as money owed.
These are your debts. Some are able to handle their debts on their own but things can quickly get away from even the most diligent bill payer. Working with debt counseling services can often help set any negative ship aright.
Worth: Once you know how much you have and how much you owe, you can figure out net worth. If you subtract your debts from your assets, in a real broad way this your net worth. If you are invested in the public markets, your net worth can swing wildly from moment to moment.
If there are repairs or weather events which impact the value of your vehicles or properties, this is another thing which can impact your net worth over a time period.
Motivator: The good news about what your net worth actually is two-fold. For one thing, most of us who work hard and invest smart have net worth which increases over time. So even if it seems as though your net worth is going nowhere, if you are patient and diligent, you will be rewarded. Secondly if you are not where you want to be with your net worth, this underlying fact can be a great motivator.
If you’re having trouble with debt, speak to debt counseling services such as Superior Debt Relief Services. We’re here if you need investment advice, debt management, or assistance getting your net worth where you’d like it to be.