The first step to take when building wealth is determining your net worth. Net worth is the total of your assets minus your liabilities. In other words, the value of everything you own, minus what you owe creditors.
(Total Assets) - (Total Liabilities) = Net Worth
Assets are items of value that can be sold for cash. Assets can include checking and savings accounts, real estate, retirement plans, stocks, bonds, and collectibles, like coin collections or artwork. Liabilities, on the other hand, represent your debt and include things like credit card or installment loan balances, your home’s mortgage, and student loan debt.
Here’s a quick example of the net worth calculation:
Knowing your net worth helps you make decisions in reaching your short- and long-term financial goals.
Ready to calculate your net worth? Net Worth Calculator
According to the most recent information from the Federal Reserve’s Survey of Consumer Finances, the average net worth of American families is $121,700. If you would like to see how you compare and work toward your ideal net worth, contact the office. And don't forget to review your personal finance calendar.
This material was developed and prepared by a third party for use by your Registered Representative. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. The content is developed from sources believed to be providing accurate information.
For a comprehensive review of your personal situation, always consult with a tax or legal advisor. Neither Cetera nor any of its representatives may give legal or tax advice.
How Much Are You REALLY Worth?
April 25, 2023