SIMPLE. Money Edition 3: Calculate Your Net Worth
Your net worth is a simple calculation that can help you keep “score” of how well you are doing financially over time. In this third installment of the SIMPLE: Money Edition series, Dr. Matt Morris, LPC, LMFT, and Erik Garcia, CFP® provide you with a simple, practical, and tactical strategy for helping you calculate and track your net worth. Start now by improving your finances, improving your home, and investing in your relationships with this simple task.
Episode Highlights:
- Erik mentions today’s SIMPLE series, Money Edition. (00:56)
- Erik explains the definition of net worth. (2:52)
- Erik shares why tracking our net worth is significant. (4:44)
- Erik mentions the difference between income and wealth. (5:18)
- Erik shares how we calculate our net worth. (5:34)
- Erik explains what liabilities are. (8:08)
- Erik explains what happens if your net worth increases. (11:01)
Key Quotes:
- “I love this SIMPLE: Money series because it’s just getting back to the basics about the simple things that we can all do to improve our financial security.” – Erik Garcia, CFP®
- “The reason why we track net worth… it’s a measurement of how we’re doing financially, because it’s advancing us towards some goal, some objective, some end that we find valuable.” – Erik Garcia, CFP®
- “I like to say what gets measured gets done. So, the idea is to increase your net worth to increase your financial position. This is a good measuring tool, if you will, to kind of see where you are.” – Erik Garcia, CFP®
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