What is Your Net Worth?

Many people think about that wedding ceremony when they will be able to stop working but rarely do anything to get to that wedding ceremony. Americans are currently saving less than 1% of their income. Home foreclosures have reached their highest. If we have a confident net worth it most likely is due to our real estate holdings or put another way, our home. We are currently in a real estate thrive. Home prices have increased up and away. Unfortunately what comes up must come down. Fortunately real estate only precipitates for a while and time will cure all affilictions.

So what is the best way to reach your retirement goals? I don’t know, but I do know that most people have no idea as to how to measure how well they are doing. We all know you need to have financial goals to reach retirement but you must also know how well what you are doing on a monthly, yearly and decade basis. If you don’t know how to measure your investment performance then how will you know if you are meeting your goals? The single best way to determine how well what you are doing is to keep track of your net worth. Net worth figures are not just for big business but are for you. What better way to know how well what you are doing financially?

Now how do we calculate net worth? Simple. Add up all of your assets and subtract your debts and you will know your net worth. Assets are your home, bank accounts, saving accounts, retirement accounts, real estate investments, stocks, bonds, cars, and devices you keep. Your debts are all you could owe. For example, the mortgage on your home, real estate loans, loans on retirement funds, car loans and any other debts you have. how much adam schiff worth

By keeping tabs on your net worth on a monthly and yearly basis you will see if you are relocating the right direction. One of the difficulties of knowing your net worth is determining the value of your assets accurately. For example how much is your home worth? Well it is not worth what you think it is worth. So many times we tend to think our home is worth more than it really is worth. There are several free online home assessment websites that you can use to get an accurate value for your home. I would recommend using at least three of these sites and average the evaluations.

Bottom line you must know your net worth if you want to know if your investments are settling. If you want to stop working soon, get in the habit of establishing your financial net worth.