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Joanna
@joa71
Know Your Net Worth
It can help you to determine when you are and how to get where you want to be.
- You can identify areas where you spend too much money. Do you need it or merely want it?
- Pay Down Debt. You can develop a plan for paying down debt.
- Your net worth figures can motivate you to save and invest money.
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Piper E.
@pipge474
Net worth meaning (and why you should know yours)
Your net worth
Your net worth is the total value of all your assets, minus all of your liabilities.
It is important to know your net worth so you can calculate how much progress y...
How to calculate net worth
- Add up the total valued of your cash and other assets. Items could be cash, stocks, bonds, DCs, 401(k), real estate, the money you're owed. Your goal is to determine how much these assets would be worth if you were to convert them into cash.
- Then subtract all your outstanding liabilities, such as credit card balances, student loans, mortgage(s), medical debt, car loans, private loans, payments remaining on a home or car lease.
Why you should know your net worth
- Knowing your net worth provides you with an actual state of your finances.
- It can also tell you how close you are to achieving financial independence.
- Tracking over time helps you know if you're spending too much month after month.
- When opening a bank or brokerage account, your net worth will be considered. Knowing up front can help you see whether you're eligible for certain investments.
Joanna
@joa71
Financial planning for Beginners - Top 10 Golden rules
Try making a budget
- Create a full inventory of expenses in front of you: Categorize them into fixed and variable; urgent and non-urgent; necessities and luxury; avoidable and unavoidable.
- You can c...
Financial planning
...is the process which provides you a framework for achieving your life goals in a systematic and planned way by avoiding shocks and surprises.
Maintain a personal balance sheet
It’s a statement wherein you can jot down your assets and liabilities.
- Pull together your bank statements and other proofs of the liabilities
- List down your assets like the bank balance, all investments, home value, and value of other assets.
- Take a sum of all the assets to arrive at the total value of your assets.
- List down your liabilities the (car loan, home loan, credit card balances etc.)
- The sum of all the liabilities will show the value of the money you owe.
- When you subtract the value of liabilities from assets, you get your Net Worth.
Vera
@vera_18
Calculating the Value of Time: How Much is Your Time Really Worth?
Get The Most Out Of Your Time
It starts with knowing what your time is worth. For instance:
- People who spend their time doing more profitable work make more money.
- People who...
Monetary Value of Time
We all have some idea of how much our time is worth. On extreme ends, it is easy to know if a task is worth your time. For instance, if someone offers you $0.07 per hour and another $7,000 per hour, you would have no problem to decide.
However, in the middle of the time-value spectrum, it is less clear if a particular task is worth your time. While everyone has an hourly value, few people know the exact amount.
The Real Worth Of Your Time
Use the Realized Income Methods to calculate the value of your time. It is based on the income you received and will help you make better decisions on how to spend money day-by-day. You need two numbers for your calculations.
- How much time you spend to earn money.
- How much you earn during that time.
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