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Welcome to DebtWave Credit Counseling smart with your money
video tips
measuring your wealth
why it's important to find your net worth
let's say you're going on a trip to pay driving from the west coast to the east
coast
would you just throw a few things in a bag pack up the family and head out on
the road
that would be pretty crazy right?
Of course not, this trip would have to be carefully planned out.
there's a lot to see along the way
Maybe you have family you want to see in phoenix
or you want to stop to go skiing in the rockies
perhaps you have kids close to college age and you want to visit a few campuses
So You plan your route accordingly
not to mention you will find out where to stay
finances for food
gasoline, and fun stuff.
we all want to comfortable that financial futures would it be alright
We tend to work and plan very hard to make sure we have a great trip
for where we want and uh...
this is we're finding your net worth comes in
what his net worth
your net worth is your assets minus your liabilities
an asset is anything you want that you can exchange for cash value
examples can be sitting in camps
retirement plans stocks and bonds
and the house or condo just to name a few
liabilities are dead or money that you will
some examples our home mortgage
credit-card balances
carlo
hospital or other medical bills
and student loans
as you can see some items such as a home can be both an asset and liability
when you take your liabilities that subtract that from your assets you get
your network
in this example you can see that joe has put down all of his assets in
liabilities
this is a snapshot of his current financial wealth
not remember our trip
just balance sheet will not give him the starting point to help in previous
financial roadmap
from here will be easier for him to build on his future by creating monthly
budgets
we can't know where we're going until we know where we're starting
for more information on the subject you can download that waves smart with your
money workbook
and start measuring and creating your wealth
thank you for tuning into our smart with your money videotape
be sure to look for an expedient tip
credit card debt calculators the importance of low interest rates
if you have questions or topic you would like answered
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