Many of Capital Budget Strategies, LLC, Austin’s best financial coach, Austin clients ask why they need to know their net worth. The answer is your net worth is a quick and easy way to determine your true, current financial status. Plus, if your net worth is a negative number, you know to get very serious about paying off debt.
To make it simple, suppose you have a huge garage sale and sold everything you own, your cars, house, clothes, dishes, pillows, etc., and you ended up with a pile of cash. Then you took that cash and paid off all your debts. Your net worth is how much money is left.
Net worth is: Assets – Liabilities = Net Worth
Work through the two attached Worksheets from Capital Budget Strategies, LLC’s 2020 Finanical Workbook©. On Worksheet 1, Assets, write down the value in today’s dollars. If you sold your car today, how much could you get? Then subtract how much you owe on the car and that is the “Money obtained if sold.” List all your assets and add up the column to find the value of your “Total Assets.”
Next, complete Worksheet 2, Liabilities. Write down anything you pay off monthly, your car, house, school loans, credit cards, furniture, etc. Add up the column to find your “Total Liabilities.”
Finally, subtract your Total Liabilities from your Total Assets and the result is your Net Worth. Congrats, now you know exactly where you stand and where you need to be.
For $149, an Austin Financial Coach from Captial Budget Strategies, LLC, will help you find your Net Worth, review your spending and savings habits, build a Household Budget, an Emergency Fund and set up a Snowball Debt Repayment Plan if needed. Finally we will introduce you to high interest, on-line only banking. We can meet during the week, in the evenings and even on weekends.
The cost includes your first session (approximately 4 hours) and one follow-up session at the 1, 3 or 6-month mark to review your progress and answer any questions.
Take time to find your Net Worth, it’ll be worth it!
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