They’ll get down to the nitty-gritty so you can focus more on better financial habits. There are a ton of apps out there ready to help you. If the thought of tracking your own net worth triggers your anxiety, put your fears at ease. Think of it more as a diagnostic tool than anything else. Whether you’re talking about businesses or individuals, determining net worth is a way to figure out where you can allocate more effort when it comes to finances. We’ll go over these apps below.īut let us recap - why would you track your net worth? Why Track Net Worth Simply enter in your financial accounts allow the apps to calculate your net worth for you. If you’re not much of a spreadsheets or numbers person, you can also use net worth trackers. It’s certainly a way to identify places where you can change your money habits, but don’t take a negative net worth to heart. That’s okay! Remember, net worth is not an evaluation of you, but of your financial status. $5,400 (assets) – $27,000 (liabilities) = -$21,600 (net worth)Īs you can see, this person’s net worth is negative. Once you’ve totaled everything up, subtract your liabilities from your assets. Here’s an example of what your spreadsheet might look like: Assets It all depends on how closely you want to track your net worth. Write down the exact amounts if you’d like, but round estimates can work as well. To calculate your net worth manually, list out your assets and liabilities in a spreadsheet divided into two columns. Rather, net worth is key to learning more about your financial status in the present, as well as identifying how you can improve your net worth (and financial health) in the future. When it comes to net worth, there’s no magic number that you’re striving towards. Businesses and countries can have net worths as well. Your income, however, is not a factor in determining your net worth. An individual’s net worth can be described as positive or negative. Net worth is the difference between your assets and your liabilities. For anyone seeking independent financial advice, tracking your net worth is important. Personal finance doesn’t have to be difficult to understand. Best Net Worth Trackers: Summary What is Net Worth?
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