Saturday, January 29, 2011

Discover Your Net Worth by Gidget Giardino

Ok. So, when you think of your net worth I bet you kind of pull your eyebrows together and maybe even wrinkle your nose a bit. You see, most people have no real idea of what their net worth is. If you fall in that boat here is where I come in.


How much money do you have in the bank? Write the dollar amount you have in your checking account and then under that write the amount you have in savings. Add them together. Now, look at any restricted access you have to finances such as CDs, IRAs, or 401 (k) and add that to your tally. Then, include your physical assets. These include anything you can sell quickly if you had to such as a home, car or personal items of value. You can use your tax bill to determine your home value, and use Kelly Blue book for your vehicles. Take all those figures and add them together.


To whom do you currently owe money? Things you owe money for right now, like rent, your car payment, or utilities are known as your current liabilities. Now, add in whom you owe money to over the next 1 to 5 years. Write down things like your car loan and credit card debt. These are your intermediate liabilities. And, of course, you must figure your long term liabilities. To whom do you owe money beyond 5 years?  Here is where you'd list your mortgage and/or student loans, etc.


Once you have added up all your assets and added up all our liabilities; you determine your net worth by subtracting your liabilities from your assets.

If you don't like what you see, and you want to raise your net worth, you will need to increase assets or choose assets that grow. (Preferably both.) You can also improve your net worth by reducing your debts.
Sounds like a no-brainer, huh? But, right about now you're thinking... How the heck am I going to reduce debt (liabilities) and/or build up my savings account (assets)? Again, here is where I come in.

I have acquired a reputation for helping others build a successful home-based business without all the hassles. We work together as a team toward your monetary goal, and when I say together, I mean together. Follow a simple system on a consistent basis and your net worth will improve. Sounds easy? It actually is. But, don't take my word for it... Do it and you'll soon see for yourself.

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