29 Mar
2010

Your net worth is the total amount of your assets (including bank accounts, savings, stocks, retirement funds, and property) minus your debts. From time to time, it is fun to calculate your net worth. However, it is important not to reduce yourself to just a number.

If you determine that your net worth is low or even a negative number, don’t panic. It is possible to turn your net worth around by paying down your loans and by building up a good savings account. You can also improve your net worth by investing in stocks, CDs, or other assets and by contributing to a retirement fund. You can also save for a home, which can increase your net worth.

However, keep in mind that your net worth is not usually as important as your credit score when you apply for a loan. Your lenders will be more interested in seeing that you pay your bills on time than on seeing that you have plenty of property. Working on improving your credit score and your net worth makes the most sense financially.