Money management is the cornerstone of every financial plan and the foundation for every financial future. Even with optimal risk management through insurance, a solid estate plan, minimal taxes and an extraordinary investment portfolio, if you fail to properly manage your money you will fail. [Read more…] about Introduction to Money Management
Net worth allows us to assess our current financial situation and allows us to set short and long-term goals based on solid data. Setting annual net worth goals is an effective strategy, but the results will only be as good as the process and the data involved. When setting net worth goals, it is important to be realistic. [Read more…] about Ever Use Net Worth to Set Goals? You Should
Calculation of net worth can be done with a variety of tools. Though many tools exist, they all must involve the essential concept of subtracting liabilities from assets.
These tools include a simple worksheet, an online calculator, a spreadsheet based calculator or a personal finance computer program to name a few. More complicated calculators exist for individuals with more complex financial situations, i.e. business owners or those with extensive assets. [Read more…] about Know How to Calculate Net Worth? Learn Now!
Net worth is determined by subtracting your liabilities from your assets. The product is a real assessment of your current financial situation. Net worth and cash flow are the cumulative result of all financial decisions that we make. The net worth calculation provides a wealth of information that can be used to establish goals and develop a planning strategy. Below is an overview of the planning process. [Read more…] about How Does the Net Worth Planning Process Work?
Net worth can be positive or negative. Negative net worth is not necessarily bad. Many families begin their adult lives with negative net worth. Conversely, positive net worth does not necessarily mean that the family is “set” and finished planning. The calculation of net worth and establishment of goals provides us with the framework with which to develop our plan. A variety of tools can be used in developing the plan. [Read more…] about How to Develop and Use a Net Worth Plan
Net worth is a valuable tool for analyzing your current financial situation, setting realistic goals and measuring progress along the way. Essentially, net worth is a measure of all of your assets minus your liabilities. Net worth can either be positive or negative. A negative net worth in early adulthood is common. Once your initial net worth statement is developed, updates and reassessment are relatively easy. [Read more…] about What is Net Worth?