Net worth is the sum of all assets and liabilities at a particular time. Assets will include cash, properties and investments. The existing debts like student loans and bills are liabilities. It can also be defined as what you own minus what you owe. Liquid net-worth would be the total amount that is easily convertible to cash. Knowing your net worth is important to:
1. keep debts from piling up
2. identify the areas where you overspend
3. cut down on unnecessary expenses
4. planning mutual funds to invest in
5. making retirement contributions
Net worth calculator is a free online tool that helps you calculate your financial standing at any given time in a seamless manner. You can now make periodic changes to your portfolio based on long-term and short-term financial objectives. This is crucial for both business and personal goals. See how the calculator works and what it does for you.
Net Worth Calculator
A net worth is ‘positive’ if assets exceed liabilities and ‘negative’ if liabilities are bigger than the assets. The top mutual fund house in India offers a smart and advanced calculator that computes the results in less than a second. You can easily calculate the worth by inputting a few variables in the calculator. It will include shares and mutual funds, property, home loans, outstanding bills and payments, fixed income assets, jewellery, personal and other loans, credit card dues, cash and bank accounts, income tax owed, other assets and other liabilities.
Simply press the ‘Calculate’ button to arrive at the result. You can see the sum total of your assets, liabilities and your net worth. This is your current financial strength which means the final value if you sold off all you have and clear all your debts.
Tips to Use a Net Worth Calculator
Remember to carefully prepare a list of your loans and assets. Now input the correct data in the fields and try to recheck once. Make sure all the information is true to your knowledge to avoid major errors. A net worth calculator saves the hassle of manual computation which is time-consuming and requires thorough effort. It also systemizes and represents properties and debts and helps to reach the most accurate results.
Try to exclude items that are intangible and difficult to sell. For instance, patents, copyrights, brand recognitions and intellectual properties will not count. Continue to track your net worth from time to time. It will help you get an idea of how much you may grow or decline in the coming years. This makes it easy to plan your financial goals, retirement, and savings against inflation rates in the country to stay afloat during rainy days.
Minimise your expenses, try to make more money and invest as much as possible in safe avenues. Net worth is an ever-changing measure of your financial stability. Aim for a 10% annual growth rate and do not lose more than 15% of the worth in a year. This way you do not have to worry about savings and funds for yourself and your family.
