A net worth analysis provides an overview health of ones financial health. You basically do this by evaluation the overall wealth or value of what they own and what they owe (debt). The net worth is the value or amount that you are left with if you were to pay off everything after selling all that you owe.

Calculating the assets is taking the monetary value of any of the following that you own: cash and bank account, real estate (Home and any rental properties), Investments such as stocks, bonds, retirement accounts, and personal property such as jewelry, vehicles, collectibles.

You will take the sum of all your assets and subtract all your liabilities such as mortgages, auto loans, student loans, credit card debts: total assets – total liabilities = Net worth

A positive value would mean that you have good financial health while a negative value means that you have financial challenges.

Managing debt means managing and reducing liabilities and increasing net worth. It’s important to regularly monitor so you can make informed decisions. It helps you focus on reducing liabilities and managing lifestyle choices.

If you are planning on purchasing a home or an investment property, analyzing your net worth may help you assess your financial capacity to handle expenses and unplanned emergencies.

Karstens Wealth is located in Hinsdale, our financial advisors can help you in reviewing your net worth to help you gain a clear understanding of your financial standing. We can guide you in making informed decisions, plan towards retirement, save towards education or major purchases, build and protect wealth.

Karstens Wealth’s financial advisors can help you evaluate your net worth, help you prepare for emergencies, invest for financial goals and retirement.