This Podcast episode will teach out how to know your net worth and why it's so important to fully understand those numbers.
Why is knowing your net worth important?
1. You understand your liabilities – everything that you owe on owns you because you’re liable to pay them, despite any hardships that you might encounter.
When you enter into retirement, you want to make sure that you have a positive net worth.
2. Write down what you own – things like retirement accounts, IRA’s, real estate, bank accounts, savings accounts, personal property like – vehicles, jewelry, and collectables.
3. Then subtract the things that you owe – like student loans, vehicle loans, personal loans, mortgage, credit card debt, and medical debts.
The difference is your net worth. Is it positive or negative?
If your net worth is negative, get it positive, focus on paying off debts and then investing into retirement.
If your net worth is positive – congratulations! You’re headed in the right direction but I want you to keep going. Invest 15% of your income into retirement – contact an investment specialist to get you started.