Your Financial Net Worth Statement
Your net worth is an indication of your total wealth. You can calculate your net worth with this basic equation: total assets less total liabilities equal net worth. The table will shows this equation in action with a net worth of $169090 a very respectable number. For many investors just being in a position where assets exceed liabilities is a great news Use the table below as a model to analyze your own financial situation. Your mission is to ensure that your net worth increase from year to year as you progress toward your financial goal.
Your Personal Net Worth
|
Totals |
Amounts |
Increase From Year Before |
|
Total assets |
$286090 |
+5% |
|
Total liabilities |
($117000) |
-2% |
|
$169090 |
+3% |
One reason you continue to work is probably so that you can pay off your bills. But many people today are losing their jobs because their company owes, too!
Debt is one of the biggest financial problem in America today. Companies and individual holding excessive debt contributed to the stock market’s massive decline in 2000 and the U.S. Recession in 2002. If individuals managed their personal liabilities more responsibly, the general economy would be much better off.
One reason of the United Stated appeared to be doing so well during the late 1990s was the fact that individuals and organizations went on an unprecedented spending binge, financial mostly by excessive debt. The economy looked unstoppable. However, sooner or later you have to pay the piper. Stock prices may go up and down, but debt stays up until it is either paid down or the debtor files of bankruptcy. As of the 4th quarter of 2004. U.S debt has surpassed a mind-boggling $37 trillion, which means that consumers, businesses, and government will continue dealing with challenging time through this decade.
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