Why You Need To Know Your Net Worth ASAP - YouTube

Unknown: Last time I calculated my net worth, I was at $580,000 or so.

I'm almost a baby millionaire because of my net worth.

If everything goes well, I should hit the six figures mark this year.

If you're not building up your net worth and building up assets, you're always going to be

working.

How much are you worth? Whether you're earning money, spending it or saving it? It's important to

know your net worth. For folks under 35, the average net worth is $76,300. But the median net

worth is only $13,900. Where do you fit in? understanding all of this can help you reach your

money goals. Here's why knowing your net worth matters.

What's interesting about net worth is is that you could look like you're worth a million bucks, but

in reality, everything you own could be levered or have a loan associated with it. We call that all

flash no cash. net worth is simply taking the things that you own, assets, and subtracting the

things that you owe, or liabilities. Assets are everything from cash that you may have in your

checking and savings account, and investments in your brokerage account. It could be your house,

your car, basically anything that's worth value. Liabilities are the things that you owe, typically

loans like automobile loans, student loans and your mortgage.

When I was younger, I wasn't really thinking about how much I own and how much I still owed. But it

would have been super powerful. Because if you do know where you are, next time you're at the mall,

or next time you're online, you might not spend money on something that you really don't need.

Here at One Big Happy Life, we first started publicly tracking our net worth in 2017. And our

net worth was negative $77,000.

We wanted to show people using net worth, that you can have that and build wealth and see that number

increase over time,. Over the past four years, our net worth has increased over $500,000. And the way

that we've increased our net worth has been primarily focusing on making sure that we're

putting a good chunk of money every month towards building our wealth.

It's important to track your net worth so you know how you're doing financially and whether or not

your wealth is increasing or decreasing,. It's very possible to have a negative net worth. This

means you owe more money than assets that you own.

Ninety-five percent of the people that I've worked with have a negative net worth, right. They have

nothing invested, they just have a house, a car, all these things that are liabilities. If

something doesn't pay you cash flow, or isn't appreciating, to me, it's not an investment or an

asset.

I would love to see you reach at least a savings of one year of your salary by the time you reach

age 30. And above that, continue to build bit by bit, because that sort of sets your tone for

financial wellness and financial independence. The more you can save, then the more you can grow as

well.

If you're seeking to get to your dream net worth by the age of 40, you can totally do it. Just keep

these things in mind. Continue to invest in yourself and really invest in your relationship

with money. Stay away from debt that you don't need to take on.

The best ways you can increase your net worth are first master your cash flow, know how money comes

in and out of your life. The second thing you can do is be consistent with your savings. The goal

here is to accumulate assets, not liabilities or spend the money that you're making, so you can

invest in the first place. And then the third thing is to regularly invest your money in

appreciating assets regularly investing in the market using index funds or contributing to your

401k or simply saving cash in your savings account. Don't accumulate more debt. And don't

spend every dollar you make or you'll never get ahead.

While you're in your 20s or 30s or 40s, let's take that little bit of surplus cash and instead of

investing in stashing it away so that you maybe have something 40 years from now, let's invest it

right now into our craft right now and develop our ability to earn more money, so it doesn't take you

three months to save five grand, it takes you two days to make five grand.

A lot of improving your net worth is easier said than done. It takes patience. It takes dedication

and it takes caring about your own financial life in order to get ahead.