Why must you calculate your net worth from time to time?
Net worth is a great insight into your financial standing. It is essentially the difference between what you own (assets) and what you owe (liabilities). Assets include your income, investments, home, etc., while liabilities include loans, credit card bills, taxes due, and more. Knowing your net worth is important because it helps in several ways to financially plan for a secure future. Reasons to calculate your net worth periodically
- Allows for a debt management plan
- Helps prioritise the utilisation of your funds
- Keeps spending in check