12/28/2021
- Your Net Worth - Money comes in and money goes out. For most people, this is about as deep as their understanding gets when it comes to personal finance. As a starting point, it is important to calculate your net worth – the difference between what you own and what you owe. Your net worth represents where you are financially at a particular moment and is the most important financial number that tells you how well you are doing with your money and wealth creation. Many people start out with a negative net worth and through consistency in investments are able to create wealth. If you follow the steps to manage your personal finances, your assets will grow and your debt will shrink and you will see a positive net-worth that will move you toward a high net worth. By monitoring your net worth over time you will experience financial freedom and may even become financially wealthy.