Blog: worth

Why You Should Use A Net Worth Calculator

Net

Most people hardly know what they are actually worth but when asked about their net worth, they might think this only accounts for what they have in a bank. For the vast majority of people, their savings and checking account amounts to less $20,000 for an individual and is not triple their salary by the time they are in their middle age. To calculate the average net worth, it is a simple formula of what you own that has value to it minus what you owe. Anything that is considered to have a value and can be sold is part of your net worth. In other words: assets - liabilities = net worth. [ Source: https://www.cnbc.com/select/average-net-worth-by-age/ ]

If you aren't worth much, don't worry too much. If you are young, you have your life ahead of you and time to obtain and grow your assets. Just remember that those with the most still die with nothing. However, while you are alive, it makes sense to acquire some assets in your name, and even use those assets to borrow equity or sell off for cash or something else of value. Many people use their assets to add more assets into their net worth, such as acquiring new property with downpayment by refinancing or using another asset as collateral.

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