What’s your net worth and how to increase it

What do you think you are really worth in terms of money? Everything you own has a monetary price, right? The hard fact of is that your net worth is the amount of money you own. That’s economics -- cold and hard. So, what do you think is your net worth?

Financial Assessment helps you answer that question. Very simply, it sums up all your assets and income in one column. In another column, it chalks up all your expenses and liabilities. The resulting difference is your net worth. If the asset side is heavier, then you have a positive net worth. And if the liabilities column is bigger, then you are in serious financial trouble, because you are in debt, way beyond your current capacity to repay.

This is the figure for today. But your net worth could be higher in future, or it could be lower than this. Life’s not certain. Some untoward event could wipe off a significant amount from your savings. This is where you realise the beauty of a Financial Assessment. It plans for all the probable uncertainties of life, as well as your financial goals. It is a personalised search for solutions to your financial future, relying upon your life’s relevant criteria. That is why it is recommended for every earning member of society, so that life’s challenges are easily met.

How does it help to increase your net worth?

Impulsiveness in money-related decisions is detrimental to your financial well-being. A planned approach has been proven to not just save money, but it also help multiply it. You will be making provisions for all your present and future investment requirements, be it your insurance needs, retirement planning, your children’s education, and various other foreseeable expenses -- big or small. Your tax liabilities are minimized too.

The outcome of this assessment is that you will know what your financial dreams are, and what you need to do to achieve them. You get to plan your investments now with specific goals in sight. Not just Top Mutual Funds, you will also be investing in diverse assets, which specifically meet your needs. And this service is given to you by professionals who have considerable experience in the field.

What are the best proven practices to raise net worth?

• Savings that earn interest

That little extra you save today on your shopping, money saved on rationalizing expenses -- all that should be regularly saved in some investment. Because cash won’t increase on its own. Make it a family habit to avoid needless expenditure. And let all the money you save thus, earn interest, rather than lie around. Keep tracking the markets for the reliable investment options with healthy rates of return.

• Long term investments

Land and equities are two options, which, if you are extremely lucky, could generate handsome profits in a short time. If you find them a bit too risky, or complicated, enlist the support of the fund manager and let him take care of your money invested in his mutual fund. Generally though, you must let any investment grow. Once you have done all due diligence, then invest and do not be affected by fluctuating prices. Ultimately, if you’ve chosen well, your investment will give great returns in the long term.

If you listen to too many experts, you will only confuse yourself. Find someone good with numbers to assess you, let him/her choose the path you should take to increase your net worth, and then follow that advice without a care.