Personal net worth: Why it is important to know

Calculating the numbers -- Steve Sorensen net worth

There comes a time in a person’s life when they reflect on how much they have accomplished in life, how much of it can be put into numbers, and what that number is. Calculating one’s personal net worth is easy – simply add the value of assets and subtract the value of liabilities. Depending on the value one ends up with, a person decides to make lifestyle changes. Here are four reasons why it is important to know one’s personal net worth. Steve Sorensen net worth.

See debts clearer: By seeing all liabilities, one can get a grasp of where most of their money goes when they are paying debts. Having this knowledge allows them to make the adjustments in which loan to prioritize, how to pay them more efficiently, and to clearly see the results after making such changes. Steve Sorensen net worth.

Preparation for retirement: Before one can retire, knowing their net worth can let them know if it’s possible to retire at an earlier age or not. Keep in mind that 401(k)s aren’t the end all and be all of retirement. They can also compare their net worth from the year before to see how much wealth they are saving up to properly plan for their retirement. Steve Sorensen net worth.

Writing wills: Revisiting one’s net worth is necessary when writing down their will and testament. It can help them divide their assets properly to make sure their family doesn’t fight over the assets that they will leave behind. Steve Sorensen net worth.

Wake-up call: Knowing their current net worth can be the wake-up call some people need to turn their lives around. It can show just how little one has or how much more debt they have to pay in the next few years. It can be the push some people need to seek higher-paying jobs and lose all unnecessary spending habits. Steve Sorensen net worth.

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