Net Worth – One Financial Number You Should Know

Limor Markman
Limor Markman is a Real Estate Investor and Money Expert empowering women to live unapologetically Financially FabulousTM lives! Following a decade of marketing leadership in the Financial Services industry, Limor found herself asking if there is more to life than climbing the corporate ladder and working even more hours. With these thoughts in mind, she embarked on a journey to educate herself on real estate investing and has quickly become an accomplished real estate investor with properties across Canada. Limor launched www.Limor.Money as well as the YouTube channel ‘Limor’ as a judgment and jargon free space for women to learn about and excel at managing their finances. She travels across Canada teaching women the basics of real estate investing. She is also a contributing author to the best selling book, “Who’s Going To Stop Us Now,” where she tells her personal finance journey. Limor believes that all women should be financially independent regardless of their relationship status and has made it her mission to empower women to take steps to make this a reality.
Personal Finance

Nov 19,2017

Do you know your net worth?

Net worth is probably one of the simplest ways to have an overall snapshot of how you are doing financially. It takes into consideration your assets (everything you have and own) and all your liabilities (everything that you owe) and it’s all tied together in one number… Ta Da!

One way to think about it is if you were to hypothetically sell everything you own and then use that money to pay off any outstanding debt. The money that you have left over is your net worth. Of course, this is ridiculous, you wouldn’t actually ever do that, but in theory, that’s how it works.

There are few reasons why it is beneficial to calculate this number in addition to just giving you an overview of your financial performance.

First, it allows you to see the benefits as you start to pay down debt, even if your savings and investments are not increasing.

Second, it shows the implications of financial transactions that have an impact on both your assets and liabilities. For example, if you purchase a property, which is an asset, and you have a mortgage, which is a liability, you can see the impact of both.

It is a good idea to track your net worth over time and monitor its progress. Many people who track it, look at their number once a year, to understand how it has changed. The exact frequency that you check it, doesn’t matter, just that you monitor it regularly.

Btw, don’t forget to download the FREE worksheet to help you calculate your net worth and create a goal establishing how you want it to change in the future.

Leave a comment below letting me how much you want your net worth to change and in what period of time. Declaring your goal, will make you more likely to fulfill it!

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