Why you should track your Net Worth

Your Net Worth is the positive sum total of your assets (such as stocks) minus any liabilities (such as a mortgage or credit card debt). I like to include the market rate of possessions such cars, motorbikes and tools in the Net Worth too, because if need be you could liquidate them and turn them into assets. For example, this could be the sum total of your house, car, retirement savings and savings account minus any debt or loans you have on those, such as a mortgage, car loan or credit card debt.

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