What’s your current net worth

Sponsored Links

Many people who are proactive when it comes to their physical health are not quite as conscientious when it comes to their financial health. Here are three questions you should be asking yourself on a routine basis that may help you become better organized with your own financial planning.

Whats your current net worth

What’s your current net worth?

Your personal net worth is simply a measure of your assets less your liabilities. In order to calculate it, estimate the value of the things you own and add them all up. Such assets typically include the money in your bank and investment accounts, the cash value of any personal insurance policies you carry, the market value of your home and motor vehicles, and the cash value of personal items like jewelry and furniture.

Next, make a list of your liabilities. This will include items like the outstanding mortgage on your home, any car or student loans, and credit card debt.

Subtract the amount of your liabilities from your assets, and you’ll have a reliable indicator of your net worth. If your liabilities exceed your assets, this is an indication that you may need to cut back on spending and focus more on saving. If you have future goals that rely upon financial resources, your net worth can help you estimate how close you are to achieving those goals.

• Are you making the proper retirement funding choices?

Sponsored Links

Whether retirement seems a long way off, or it’s just around the corner, a time will come when you will not be subsidizing your living expenses from a salary or wages. Social security may provide you with something, but for most people working today, that stipend will not be large enough to help you afford the lifestyle you may want to enjoy.

It’s important to set up your own retirement fund even if one is not offered through your employment. Consider the tax implications of such a plan carefully. A traditional IRA account, for example, may allow you to shelter a larger sum of money in the present without being taxed, but you will have to pay taxes on those funds when they’re disbursed, and tax rates may well be higher then.

Sponsored Links

Many options exist, including traditional IRAs, Roth IRAs, defined contribution plans and annuities. You may also be fortunate enough to work for an employer that offers a pension plan. Your retirement planning will depend a great deal on whether or not you’re comfortable taking on investment risk. Consulting with an experienced financial planner can help you determine this.

• Can you handle a financial emergency?

There’s only one certainty in life: From time to time, unexpected things will happen. You may lose your job; you may end up in the hospital; your house may need a new roof. Emergencies can precipitate a financial crisis if you haven’t planned for them adequately.

Financial experts counsel that it’s wise to set aside an emergency fund that contains enough to handle at least three months of expenses should the unforeseen occur. The easiest way to do this is to set aside a predetermined amount out of your paycheck and to stick with that amount whatever the temptation to buy that 75-inch, ultra-HD television set on sale. Keep your emergency fund in an interest-generating money market account where it will be easy to access should you need it.

If you see this article is useful for you , please like and share it . If you want to copy this article on your site , please write source and link to Grameen Bank . Thank you .

Sponsored Links


What’s your current net worth
1 vote, 5.00 avg. rating (97% score)

Advertisement

Loading Facebook Comments ...