We all want to build wealth, but most people don’t know where to start—or even how to calculate their current wealth. This intro video is going to coach you step by step, through understanding your current wealth profile, and how to use it to start building even MORE wealth.
Net worth is a calculation of your personal wealth.
How wealthy are you? What are you worth today?
These are very private and sometimes nerve-wracking questions. If I were to ask you, what is your net worth?
Would you know the number?
You've most likely heard the term net worth, you know it has something to do with wealth, what you may not have realized is that it applies to you! Even if you don’t feel wealthy, you have a net worth.
A staggering number of people have no idea what their level of wealth is. That is what we are going to focus on in this video. YOUR wealth.
If you were to sell off everything you owned today, and pay down all of your debts. How much money would you be left with? That number is your net worth or “wealth.”
Let’s jump in and hit the basics, then if you’d like to take a deeper dive into your net worth, you can grab our Building Wealth Mini Course.
By taking items of value and subtracting them from outstanding debts, we are left with our net worth or actual level of wealth.
Let’s dive a little deeper into valuing wealth.
**Anything of monetary value, aka stuff that would give you cash in your hand right now. **
Assets are anything from cash in your bank account to the value of your house, business you own to your investment accounts. Your Asset’s are anything (money or stuff) you can get a cash value for right now.
Liabilities or a liability is any money you own on anything you’ve purchased. If you have a car loan, credit card debt, student loans, a mortgage, business loans, and so on. Money you owe is considered a liability.
When you are calculating your wealth it is important to take into account all of your assets and all of your liabilities to get an accurate assessment of what your net worth is.
Our Wealth Building Mini Course walks you step by step through calculating your net worth and helps you identify your assets and liabilities.
Now let’s look at the average net worth for Americans.According to Nerdwallet.com and CNBC, both reported these figures as the average American’s Net Worth value by age in late 2020.
We all want to build wealth and then use that wealth to build more wealth. Understanding where you are is the perfect starting point for building and growing your net worth.
There you have it. Look at your numbers now and make a plan for building wealth, this will allow you to work towards your short and long term financial goals.
So, how does your wealth stack up?
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