If you want to be ahead in your finances, you certainly need to plan for it and be organized. First and foremost, you must calculate your net worth. This is the most important starting point. Your net worth is the grand total of your assets minus your liabilities. It is a very useful tool to measure your financial progress. In determining your net worth, you need the financial information concerning all the things that you own and the debts that you owe.
You can use the table on the left as a guide to calculate your net worth. After this exercise, I hope your net worth will turn out to be positive. If not, start planning immediately to get your finances back on track! To improve your net worth, you have to work towards increasing your income (or assets) and decreasing your debts (or liabilities).To better organize and keep track of your finances, you may want to consider using Quicken Deluxe which is a full-featured personal finance desktop solution. If you have a business to manage as well, you can use Quicken Home & Business. I personally use Quicken Rental Property Manager to manage my personal finances, businesses and all my rental properties efficiently. With this software, my net worth figure and all other financial statements are always up to date. I'll be able to get the latest financial figures with just a mouse click. Which software you should be using depends on your current situation and need. If you don't have a business or rental property, the most basic financial software would be sufficient to help you get your finances organized.
Your net worth should be used to track your financial progress from year to year. Do this exercise once a year and continually work towards growing your net worth. Keep your finances in order starting today, and you shall certainly be reaping great dividends ahead!
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Kelvin Wong is a millionaire landlord and investor. Being a long-time real estate investor, he now owns a multimillion-dollar property portfolio in Singapore, Australia and Malaysia. Kelvin achieved financial freedom at 39 and has already retired. He is the author of The Principles of Wealth and Create Your Destiny. Kelvin is a Dean's List graduate of Marketing and Management Science from Edith Cowan University.
Copyright © 2011-2019 Kelvin Wong
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