How to Track Your Net Worth and achieve your goals I know you have always wanted to go beyond the surface level in evaluating your financial progress. Well, today I’ll show you how by teaching you How to Track Your Net Worth. Tracking your net worth helps you know your financial position and how you can get where you want to he this is crucial because it encourages you when you are doing fine and gives you a wakeup call in case you are headed in the opposite direction. For this reason it is important that you finish reading through this guide then proceed to start tracking your net worth immediately.
How to calculate your net worth the first step, is to calculate your net worth at the time In calculating the net worth it is important for a person to consider the following items.
1. The cash accounts. Cash is an assets that includes all the money the person has at his disposal. It includes money currently at hand, in bank and PayPal.
2. Credit. Credit refers to liabilities. it is the amount of debt that you owe other people. See, tracking your net worth helps you become a better person by reminding you to pay your debts in time
Investment refers to money a person has deposited somewhere to help in the production process. Your current net worth is calculated by summing up all the assets (assets are all the valuables that belong too you like cash, savings and real estate’s) minus the liabilities (liabilities are the debts that you owe people and organizations). Simply expressed, net worth is calculated as follows net worth = (assets + investments) – liabilities If the difference is positive, it shows that your possessions outweigh your debts. If it is negative, then your debts outweigh your possession.
However, a negative value does not mean that you are financially reckless, but at the present your debts outweigh your assets. Form the above you notice that the net worth illustrates a person’s financial position at any given time
Free software to track that tracks our net worth Personal Capital is an outstanding software that automatically tracks your net worth. It works by creating a secure online account that can automatically sync all of your financial accounts. Through this strategy, you no longer need to log into all of your accounts now and then to calculate your net worth. The software also enables you track your net-worth on a monthly basis and analyze your investment portfolio. This software automatically calculates the assets and liabilities. The difference is your net worth.