{"id":1276,"date":"2024-02-20T13:53:54","date_gmt":"2024-02-20T19:53:54","guid":{"rendered":"https:\/\/worbywealth.com\/?p=1276"},"modified":"2024-04-02T15:56:42","modified_gmt":"2024-04-02T21:56:42","slug":"calculating-your-true-net-worth","status":"publish","type":"post","link":"https:\/\/worbywealth.com\/calculating-your-true-net-worth\/","title":{"rendered":"A Guide to Calculating Your True Net Worth"},"content":{"rendered":"

Chris Worby is a Trusted Regina financial advisor and Wealth Management services provider<\/u><\/a>. With over 20 years of experience, Worby Wealth Management is committed to providing a high standard of\u00a0financial and wealth management services to individuals, families and business owners in Regina<\/u><\/a>. Worby Wealth Management listens and delivers a personalized financial plan. In his latest Worby Wealth Blog Post, Chris Worby asks you to consider Your Financial Health.\u00a0A Guide to Calculating Your True Net Worth<\/span><\/p>\n

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How Good Is\u00a0 Your Financial Health? A Guide to Calculating Your True Net Worth<\/span><\/h2>\n

Understanding your financial health goes beyond checking your bank account balance. One of the most comprehensive ways to assess your financial well-being is by calculating your true net worth. In this blog post, we’ll delve into the importance of knowing your net worth, explain how to calculate it, and discuss why this figure is a key indicator of your overall financial stability.\"calculating<\/p>\n

Why Calculate Your Net Worth?<\/h2>\n

Your net worth is a snapshot of your financial situation, representing the difference between your assets and liabilities. It’s a powerful tool that helps you gauge your progress toward financial goals, identify areas for improvement, and make informed decisions about budgeting, investments, and debt management.<\/p>\n

Calculating Your True Net Worth<\/span><\/h2>\n
Identify Your Assets:<\/span><\/h5>\n

\u00a0\u00a0\u00a0Start by listing all your assets, including:
\n<\/span>\u00a0 \u00a0– Cash and savings accounts
\n– Investments (stocks, bonds, retirement accounts)
\n– Real estate (home, rental properties)
\n– Vehicles
\n– Personal property (jewelry, art, collectibles)<\/p>\n

Determine the Value of Each Asset:\u00a0\u00a0\u00a0<\/span><\/h5>\n

Assign a realistic market value to each asset. For cash and investments, use current balances. Consider obtaining a professional appraisal or using online tools to estimate market values for real estate.<\/span><\/p>\n

List Your Liabilities:
\n<\/span><\/h5>\n
Outline all your liabilities or debts, such as:
\n<\/span>\u00a0 \u00a0– Mortgage
\n<\/span>\u00a0 – \u00a0Car loans
\n<\/span>\u00a0 \u00a0– Credit card balances
\n<\/span>\u00a0 \u00a0– Student loans
\n<\/span>\u00a0 \u00a0– Other outstanding debts<\/span><\/h5>\n
Determine the Outstanding Balances:<\/span><\/h5>\n
\u00a0Note the current balances of your liabilities. This gives you an accurate picture of your financial obligations.<\/span><\/h5>\n

Calculate Your Net Worth:<\/strong><\/p>\n

\u00a0\u00a0\u00a0Subtract your total liabilities from your total assets to determine your net worth.
\n<\/span>\u00a0 \u00a0\\[ Net Worth = (Assets – Liabilities) \\]<\/p>\n

Understanding the Results<\/span><\/h3>\n
Positive Net Worth:
\n<\/span>
\nIf your assets exceed your liabilities, you have a positive net worth. This indicates financial stability and suggests that you are building wealth.<\/span><\/h5>\n
Negative Net Worth:
\n<\/span>
\nIf your liabilities outweigh your assets, you have a negative net worth. This signifies that you owe more than you own. While it may be a red flag, addressing and working towards turning the situation around is essential.<\/span><\/h5>\n
Increasing Net Worth:
\n<\/span>
\nRegularly calculating your net worth allows you to track your financial progress. An increasing net worth over time indicates positive financial habits, such as saving, investing, and debt reduction.<\/span><\/h5>\n
Factors Influencing Net Worth:<\/span><\/h5>\n

Events like home purchases, investments, or paying off debts can significantly impact your net worth. Understanding these factors helps you make informed financial decisions.<\/p>\n

Calculating your true net worth provides a holistic view of your financial health. It serves as a roadmap for your financial journey, helping you make informed decisions, set realistic goals, and measure your progress. Regularly revisiting and recalculating your net worth allows you to adapt to changing circumstances and ensures that your financial strategies align with your long-term objectives. Remember, knowledge is power, and understanding your net worth is crucial to achieving financial success<\/span><\/p>\n

Contact Worby Wealth Management Regina<\/span><\/a> so we can review your net worth and your personal plan!\u00a0<\/span><\/p>\n

TRUSTED REGINA FINANCIAL ADVISOR<\/strong> Chris Worby from <\/a>Worby Wealth Management<\/strong><\/a> helps you live your <\/em>dream!<\/p>\n

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The comments contained herein are a general discussion of specific issues intended as general information only and should not be relied upon as tax or legal advice. Please obtain independent professional advice in the context of your particular circumstances. This Blog was written, designed and produced by \u00a0Chris Worby for the benefit of \u00a0Chris Worby, a Financial Advisor at Worby Wealth Management, a registered trade name with Investia Financial Services Inc., and does not necessarily reflect the opinion of Investia Financial Services Inc. The information contained in this article comes from sources we believe are reliable, but we cannot guarantee its accuracy or reliability. The opinions expressed are based on an analysis and interpretation dating from the publication date and are subject to change without notice. Furthermore, they do not constitute an offer or solicitation to buy or sell any securities. Mutual Funds approved exempt market products and exchange-traded funds are offered through Investia Financial Services Inc.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

This blog post will explore why life insurance remains relevant for seniors, discuss tailored options, and provide sample quotes to help you make informed decisions.<\/p>\n","protected":false},"author":2,"featured_media":1277,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"off","_et_pb_old_content":"Chris Worby and Jeremiah Worby are Trusted Regina financial advisors and Wealth Management services providers<\/u><\/a>. With over 20 years of experience, Worby Wealth Management has been committed to providing a high standard of ,financial and wealth management services to individuals, families and business owners in Regina and area<\/u><\/a>. Worby Wealth Management listens and provides a personalized financial plan. In our latest ,Worby Wealth Blog Post<\/u><\/a> we share details about Credit Ratings.\n

Credit Ratings<\/h2>\nWe\u2019ve all heard the stories from someone we know (though we may or may not like that person) about having been a victim of some form of identity theft. Identity theft can drastically affect your credit rating, and your credit rating affects almost everything in your financial world.nnWhether you\u2019re looking to apply for a credit card, take out or renew a mortgage, get a car loan, or want to borrow a million dollars from that loan shark down the street, your credit rating will greatly impact the interest rate which you might receive for such loans.nnThere are two major players in the credit rating world of Canada \u2013 those being Equifax and TransUnion. You can, and we suggest you do, go to both these websites and sign-up for their free service to check your credit scores.n\n

Equifax<\/h2>\nDirectly from their website, Equifax states:n\u201cWe are a global data, analytics, and technology company. We believe knowledge drives progress. Our unique data assets, technology and analytics transform knowledge into insights to power decisions that move people forward.\u201d\n\nHere\u2019s a wonderful and short read [they claim it\u2019s 2 minutes but I think it\u2019s way more like 3 minutes :)] from Equifax about what impacts your credit score.nhttps:\/\/www.consumer.equifax.ca\/personal\/education\/credit-score\/what-impacts-credit-score\/<\/a>\n
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TransUnion<\/h2>\nDirectly from their website, TransUnion states:\n\n\u201cOur mission is to help people everywhere access the opportunities that lead to a higher quality of life. By helping organizations optimize their risk-based decisions and enabling consumers to understand and manage their personal information, we empower both to take their destinies into their own hands.\u201d\n\nHere\u2019s a true 2 minute read from TransUnion about 5 factors that affect your credit score.nhttps:\/\/www.transunion.ca\/what-affect-credit-score?<\/a>n\n

Find Out More<\/h2>\nWhether you\u2019re 20 years old or 50 years old, credit ratings are of utmost importance. Contact Worby Wealth Management<\/a> to help fix your credit score and set you on the path to success!\n\nSome of the services that Worby Wealth Management<\/strong><\/a> can help you with:\n