{"id":642,"date":"2010-10-01T07:10:41","date_gmt":"2010-10-01T14:10:41","guid":{"rendered":"https:\/\/maysfinancial.local\/"},"modified":"2017-02-26T02:01:59","modified_gmt":"2017-02-26T02:01:59","slug":"net-worth-planning-process","status":"publish","type":"post","link":"https:\/\/maysfinancial.local\/articles\/net-worth-planning-process\/","title":{"rendered":"How Does the Net Worth Planning Process Work?"},"content":{"rendered":"<p><strong>Net worth is determined by subtracting your liabilities from your assets.<\/strong> The product is a real assessment of your current financial situation.\u00a0 <strong>Net worth and cash flow are the cumulative result of all financial decisions that we make. <\/strong> The net worth calculation provides a wealth of information that can be used to establish goals and develop a planning strategy. \u00a0Below is an overview of the planning process.<!--more--><\/p>\n<h5><a href=\"https:\/\/maysfinancial.local\/money-management\/net-worth\/calculating-net-worth\/\"><strong>1.<\/strong> <strong>Calculating Your Net Worth<\/strong><\/a><\/h5>\n<p><strong>This can be done using a variety of free tools.<\/strong> No matter what tool you use, it must essentially consist of the same basic principle, <strong>subtracting your liabilities from your assets.<\/strong><\/p>\n<h5><a href=\"https:\/\/maysfinancial.local\/money-management\/net-worth\/net-worth-goal-setting\/\"><strong>2. Setting Goals<\/strong><\/a><\/h5>\n<p>After calculating your net worth and deriving an understanding financial situation you can begin to develop goals. \u00a0<strong>A simple example of a goal set up would be to set a net worth goal for one year from now and reset that goal annually.<\/strong> Though technically these annual goals can be thought of as objectives in achieving your overarching goal because of their measurability, I still prefer to call them goals. \u00a0Annual goals should be large enough to ensure progress towards your overarching goal, but realistic enough to be attainable.<\/p>\n<h5><a href=\"https:\/\/maysfinancial.local\/money-management\/net-worth\/developing-net-worth-plan\/\"><strong>3. Development and Implementation of Plan<\/strong><\/a><\/h5>\n<p><strong>After establishing goals it is critical to develop an effective plan for achieving that goal.<\/strong> This will include the establishment of objectives and the utilization of certain tools such as <strong>developing a budget, establishing a savings plan and managing cash flow.<\/strong> Once developed, implement your plan as soon as practical.<\/p>\n<h5><strong>4. Monitoring and Reviewing of Plan<\/strong><\/h5>\n<p>After developing and implementing your plan it is essential to <strong>follow through and monitor progress.<\/strong> <strong>Things change and sometimes adjustments will have to be made.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Net worth is determined by subtracting your liabilities from your assets. The product is a real assessment of your current financial situation.\u00a0 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 [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":3994,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[2,14],"tags":[33,124,151],"_links":{"self":[{"href":"https:\/\/maysfinancial.local\/wp-json\/wp\/v2\/posts\/642"}],"collection":[{"href":"https:\/\/maysfinancial.local\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/maysfinancial.local\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/maysfinancial.local\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/maysfinancial.local\/wp-json\/wp\/v2\/comments?post=642"}],"version-history":[{"count":0,"href":"https:\/\/maysfinancial.local\/wp-json\/wp\/v2\/posts\/642\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/maysfinancial.local\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/maysfinancial.local\/wp-json\/wp\/v2\/media?parent=642"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/maysfinancial.local\/wp-json\/wp\/v2\/categories?post=642"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/maysfinancial.local\/wp-json\/wp\/v2\/tags?post=642"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}