There are lots of ways to take stock of your financial situation. For many of us, a quick look at our checking, savings and credit card accounts gives us a brief snapshot. But what if you’d like to dig a little deeper and learn a little more about your financial picture?
Enter net worth, the calculation to use when you really want to see the big picture. What is net worth? Speaking in financial terms, your net worth is the difference between your assets and your liabilities; speaking in non-financial terms, it’s the value of what you own minus what you owe.
When starting to calculate your net worth, you’ll need to think about all the items you own, including:
Add the value of all of these items to get a realistic picture of your current assets.
Next, you’ll want to understand your liabilities—the amount you owe. To do this, you’ll want to factor in:
Finally, take your liabilities number and subtract it from your assets number to get your net worth. If you currently have fewer assets or a lot of debt, your net worth may be negative.
The good news is that calculating your net worth can be a great way to motivate yourself toward a goal—especially if you are hoping to pay down debt or increase the amount you’re saving. Seeing your number on paper can help you visualize what the results would be if you paid down or saved a little more each month.
Interested in calculating your own net worth? Let Jemma Financial help you. We’ve created a free downloadable Net Worth Spreadsheet with all the information you need to find out what your net worth is so that you can create a plan to increase it over time.
Need assistance? Call 855.662.2121 or email info@jemmafinancial.com
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IMPORTANT NOTICE
You are now leaving the Jemma Investment Advisors, LLC Website and will be entering the Charles Schwab & Co., Inc. ("Schwab") Website. Schwab is a registered broker-dealer, and is not affiliated with Jemma Investment Advisors, LLC, or any advisor(s) whose name(s) appears on this Website. Jemma Investment Advisors, LLC is independently owned and operated. Schwab neither endorses nor recommends Jemma Investment Advisors, LLC. Regardless of any referral or recommendation, Schwab does not endorse or recommend the investment strategy of any advisor. Schwab has agreements with Jemma Investment Advisors, LLC under which Schwab provides Jemma Investment Advisors, LLC with services related to your account. Schwab does not review the Jemma Investment Advisors, LLC Website, and makes no representation regarding the content of the Website. The information contained in the Jemma Investment Advisors, LLC Website should not be considered to be either a recommendation by Schwab or a solicitation of any offer to purchase or sell any securities.
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