How to benchmark your net worth in 3 easy steps

first_img 9SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr Wealth creation is about more than your investment portfolio.A better way to measure wealth than just your investment portfolio performance is your net worth, which is simply your assets minus your liabilities. Your assets include things like the money you have in your bank accounts, the value of any investments, and the market value of your home, car and other personal property. Your liabilities are what you owe, which includes your mortgage, student loans and credit-card debt.Net worth is the culmination all your financial efforts, says Sam Dogen, writer of the popular personal finance blog Financial Samurai. Benchmarking your net worth and tracking changes over time can help you focus on what really matters, he says. Here’s how to do it:Step 1. Determine your net worth.It’s easy to figure out your net worth. You can do the calculation on a spreadsheet, by documenting your assets and liabilities. Or you can use an app like Mint or Personal Capital that will track your net worth automatically. continue reading »last_img