So how was yesterdays task? Were you able to figure out things which you wanted to get rid off?
Today’s task is a little more challenging one, but I am sure some of you might have performed this at some point in time. The task is calculating your net worth.
Day 7 – Calculate your personal net worth.
Personal net worth is a combined total of what you own and what you owe.
Why is it important to calculate your personal net worth?
With personal net worth, you can find out where do you stand financially and what action you should take next to achieve your financial goals.
How frequently should one calculate this?
At least twice a year.
How can you calculate it?
It’s easy. Take a total of the assets current realizable value and subtract with the total liabilities you owe.
It’s important to consider assets current realizable value as it will help you give a clear picture of your current standings.
A few of the assets you might possess – Home, Mutual Funds, Bonds, Fixed Deposits, Car, Gold, etc. [Check out – Various investment options available to an Indian investor]
A few of the liabilities would be – Outstanding loans, Outstanding credit card bills, etc.
We also have an excel based personal net worth calculator which can help you out in this.
The task for the day – calculating personal net worth.
Comment and share your thoughts regarding this!
Can you have a downloadable excel calculator?
Sure will upload it by the weekend
Are assets pre-tax or post-tax. Let’s say I have Rs.100,000 in stock and let’s say I’d have to pay 30% in taxes if I sold it. When calculating net worth is it a Rs.100,000 asset or a Rs.70,000 asset?
Always calculate pre tax