Businessman is reading business graphs and charts

How to Track Your Net Worth

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

3. Investment.

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.

Modern people doing business, graphs and charts being demonstrated on the screen of a touchpad

How to Manage Business Finance

The Financial aspect of a business is very important. Just like customers are the blood of the business, correct use of finance is the one that keeps the company alive. lf you are not experienced in the financial aspect of running a business then you need to quickly learn how to manage business finance. The company needs to be able to sustain itself through good times and bad. And this can only happen if you have the correct financial procedures in place.

First you need to figure out what are your basic expenses. Basic expenses are things like cost of rent of the place or cost of equipment you need to buy for the business. If you have bought equipment then you can use the accounting part of depreciating value to claim tax benefits. For example: if you have spent a certain amount of money on buying a computer which you use in your business then over a certain number of years you can claim a tax refund on a percentage of the total cost of the computer. Each year Governments set different rules on this So you will need to know the rules. There are also recurring expenses like employees’ salaries or services that you use

An easier way is to hire an accountant to help you with this You can hire accountants towards the end of the financial year or you can hire one to work exclusively in your business.

A bookkeeper is essential. This person keeps track of all expenditures and accounts receivable. These are just the terms for money going out for things you buy and money corning in for sales or money you receive.

You will also need a financial planning software to make things easier. Use a system where you have assigned a number or code for each of your expenses. These codes will be used in the software. You can keep a printed out chart of these codes by your desk so that you can easily glance at it and see how much money is being spent on which item.

Once you have all of your expenses and sales logged in then you can get a clearer picture of the financial health of your company.

Cash Flow is the only word you need to keep in mind all the time. Is there enough money at the end of each week? Are my accounts on the positive side? How can I stop or reduce negative Cash Flow? How can I increase sales? How can I get the most out of the services I already pay for?

As always keep in mind that tax season comes very quickly. And all your accounts must be in order. So to recap: Get a bookkeeper or accountant. Get software. Have codes for every expense. Log these into your software. See where you can reduce expenses. See where you can increase Cash Flow by sales.