1/8/2024 0 Comments Financial health calculatorEveryone’s circumstances are different, and by comparing you’ll drive yourself nuts.įocus on increasing your net worth 5% to 10% each year as a baseline through debt pay down and asset accumulation. Yes, higher net worth is better (or even a positive net worth, for some) but you really shouldn’t measure yourself against anyone else. Your net worth is nothing more than a personal measuring stick on how well you’re doing with your money. Tools like Personal Capital do a great job at this. The point here is to write down where your net worth stands today, and track it on a regular basis. It’s okay if you have a negative net worth now. As you pay down your mortgage, your net worth grows (assuming your home value stays the same or increases). This way you can see how your net worth is trending.įor example, let’s assume you have no other assets or debts besides your home. I don’t recommend comparing yourself to other people (that’s a whole new topic) but rather compare to yourself. The reason I love net worth is that it’s easy to compare apples to apples. Your income doesn’t factor into this equation at all-it’s merely a gauge on what you currently have versus what you owe. Write down everything that you own that’s considered an asset (i.e., cash, investments, your home) and subtract everything you have as a debt (i.e., student loans, credit card debt, mortgage). Some apps, like our free spreadsheet ), do this for you, but the math is quite simple. It’s calculated by simply taking the value of your assets and subtracting your liabilities. Net worth is a common way to see how you stand financially quickly. The first step in assessing your financial health is finding out what your net worth is. Finally, create crystal-clear financial goals for yourself and your familyĭetermine your net worth, and see which way it’s trending.Make sure your investment strategy is aligned with your situation.Find out where your money is going (and if you’re spending more than you should).Calculate your debt-to-income ratio (and try not to scream).Determine your net worth, and see which way it’s trending.Loan Payoff Calculator: How Quickly Can You Repay Your Loan?.Auto Loan Interest Calculator: Monthly Payment & Total Cost.Free Monthly Budget Spreadsheet for Excel & PDF.How To Pay Medical Bills You Can’t Afford.Best Car Insurance For College Students.Should You Get Home Contents Insurance?. How Much Should You Contribute To Your 401(K).How Much Do You Need To Have Saved For Retirement.The Beginner’s Guide To Saving For Retirement.How To File A FAFSA As An Independent Student.How to refinance your car loan in 7 steps.Best Personal Loans For Excellent Credit.Understanding Overdraft Protection and Fees.Best High-Yield Savings Accounts Compared.
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