How To Calculate And Track Your Net Worth #Best Education Page #Online Earning

alright guys today I'm going to share

with you how to calculate and track your

net worth and what I'm going to share

today is probably one of the most

important personal finance rituals of

your life and I first got this in my

early 20s when I did I created a ritual

for myself where I would track and

update my net worth every three months

every quarter today I track and update

it every six to twelve months because I

really got and understood that this

number your net worth is the most

important number when it comes down to

your wealth and your financial abundance

now what I want you guys to understand

is that it's not about how much money

that you make it's about how much money

that you get to keep and what you do

with that money

accumulating assets and building up your

net worth because you can make a lot of

money and I think we should all strive

to make more money which is great but

that does not mean that you're worth a

lot of money you can make a million

dollars in a year but that does not mean

that you're worth a million dollars

because you can make a million bucks in

a year we could also be spending a

million dollars in a year and in some

cases some people they make a lot of

money but they're not worth anything

that they're just using that the money

that they make to pay for their

lifestyle and their expenses they're not

actually getting ahead and the mindset

here is you want to accumulate assets

and eliminate you know liability as much

as possible you want to accumulate

assets that can then provide a passive

income for you so that that's growing as

you continue down this path of working

throughout your life you know I see a

lot of people for example they work

their whole life till they're 60 65

years old but they got nothing to show

for it

they haven't accumulated any assets and

it's like what were you doing like what

were you doing work in all these years

for 40 years of your life if you've got

nothing to show for it so if they're

putting in this time if you're building

a business if you're going to a job and

you're making money

step one is making it but step number

two what's more important is what you do

with it and you've got to learn how to

manage money and if you don't already

know how to manage the money that you

currently have then more money is not

going to solve your challenge

financially you know that's why a lot of

people they can win the lottery they can

win a million dollars but they don't

know how to

manage what they've already got so they

end up spending it and losing it and

they get you know they end up not much

further ahead and in a lot of cases too

I've seen people that don't make much

money but they're smart with the money

that they make they invest it they save

it they make smart decisions with the

money that they have and they end up

getting further ahead and someone that

might have been making more money than

them on an you know per year basis so

this is the mindset this is what I focus

on it's the money that I make great I

make a lot of money I do well but it's

what I do with that and investing that

accumulating more assets and ideally

having your assets be able to provide a

passive income that could then support

your lifestyle and you essentially

become financially free and I've already

shared a little bit about that in some

previous videos but I want to dive into

this ritual for you guys that first know

what your net worth is regardless of

where you're starting from you've got to

know what that number is

okay you got to track this on a regular

basis I first started doing this every

three months and when I was starting out

I didn't have many assets I didn't have

many liabilities so it's very easy and

simple for me to do this today I do it

about every year or so because I have so

many more assets and liabilities is a

lot more complex than it used to be but

I would track this just by using an

Excel spreadsheet okay an Excel

spreadsheet and I'll show you guys how

you guys can do it so what is your

networks or network is your assets minus

your liabilities okay that's what equals

your net worth

your assets are what you own and your

liabilities are what you owe okay very

important of course we want to focus on

accumulating more assets and you know

you can have some liabilities we'll talk

about that a little bit but you know

assets or words that that's what you

want to accumulate the most stuff okay

so what you're going to want to do is go

through all of the assets that you have

okay all the assets and examples of

assets I'll use two different colors for

this and again I recommend tracking this

in a spreadsheet but first and foremost

would be cash okay and by the way cash

could be in your checking account you

might have another one you noticed for

your savings any investments that you

have so for example if you have stocks

stock portfolio you might have mutual

funds you might have real estate you

might have a business which many that's

an asset even you know add in your car

you could even you know take it as far

as different equipment that you might

have you know maybe you have some really

expensive camera equipment or a boat or

other assets you might own okay but

those are things that you own that have

value and what you'd want to do is you

want to calculate it put inside a

spreadsheet it is exactly where you're

at with each of these so just for simple

math purpose I'll just kind of write out

a few things let's say that the amount

of cash that you have is five thousand

dollars the amount of savings that you

have is twenty thousand dollars maybe

you've got a stock investment portfolio

of ten thousand dollars maybe you've got

ten grand and mutual funds maybe real

estate and when it comes to real estate

you want to calculate the equity the

principal okay because the mortgage if

your boring money from a bank or a

lender that's actually going to be a

liability so let's say that you

determine the equity of the property

that you have is

fifty-thousand and business is also an

asset it can be a little bit harder to

track because what you got to understand

is what something is worth it's going to

be based on what some as well to pay for

it okay and the same thing goes with

real estate you might get an appraisal

on a property that you have and they

might determine that it's worth you know

$200,000 it might be worth that but if

no one's willing to pay that amount for

it then it's really not worth it you

know it's going to be worth it some

maybe is willing to pay 150 grand that

that's what the worth is going to be

determined by so you can get a general

idea of it and same thing goes to your

business too there's many different ways

to evaluate the value of a business a

simple and conservative way could be

taking the net profit on a monthly basis

calculate that by maybe 10 10 months for

examples if your business makes you

$10,000 a month net profit then maybe

someone would pay a hundred thousand

dollars for it

now the value of business also depends

on whether or not you have a brand

that's why I often recommend for people

if you're building an online business

build a brand a brand is going to be

worth so much more

there's brands out there exist that

don't actually even make money but

because they have a following or a user

base or customers then it's actually

worth a lot you know for example Amazon

is the biggest one of the biggest brands

in the world but they actually don't

really make much money every year they

don't show much of a profit but it

doesn't mean that they're not worth a

lot they're worth a lot because of their

brand and a lot of different factors -

so do the best that you can the goal

here is not to be perfect obviously when

it comes to you know business it's again

it's based on what someone will pay for

it but maybe you determined you've got a

business that is worth 50 grand and

again your car if you own that you'd

want to put in the equity value that you

have for that and again that's going to

be based on what you could sell it for

so maybe you determinate you could sell

your car for I'll just make it simple

twenty twenty thousand dollars okay so

what you want to do you have all your

assets you want to add it up okay so

let's do some quick math here 50 you get

a hundred grand a 140 160

$65,000 okay that's our assets now that

does not mean that that's your net worth

because maybe you might have some

liabilities so liabilities you're going

to want to write down what do you owe

so for example you might have a student

loan or you might have a you know a

mortgage you might have a line of credit

you might have a car loan you might have

credit card debt okay so you also want

to calculate that so maybe your student

loan is $20,000 maybe your mortgage is

you know $200,000 maybe you got a line

of credit for $10,000 maybe your car

loan is is $20,000 and maybe you got a

credit card debt at five grams okay

again you want to calculate this so

quick math two hundred thousand two

hundred twenty to thirty two fifty to

fifty five

okay now to determine the net worth what

you'd want to do is take your assets and

subtract it by your liabilities so in

this case this would actually be a

negative a negative Network let me

calculate this one really quick for you

guys because this is a situation where

you owe more than you actually own which

is not good I'm not the best at math but

this would be actually a negative

$90,000 network okay so even though

someone could be making a lot of money

and doing really well you know you can

be making a hundred thousand dollars in

a year but at the end of the day if you

network is that a negative you know I'm

meaning if you were to sell all this and

all that you would actually be worth

negative ninety thousand dollars so

that's why this number is really what

matters the most and this is the number

that you got to focus on growing and

really building your wealth

now of course long term you know you

would obviously pay off these

liabilities you pay off your student

loan you pay off your mortgage you pay

off all this stuff and you continue to

build up your assets you can continue to

accumulate more and ideally you may be

in Cuba late more stocks or real estate

or businesses or different things that

could then provide passive income for

you things that actually appreciate in

value versus something like a car would

actually depreciate in value as time

goes on so that's the mindset you got to

have and the way that I track this in a

spreadsheet make it simple for you guys

and by the way this video today guys is

not planned at all just making up these

numbers as we go and I think you know

just so happened we came at a negative

net worth which is actually useful

because a lot of people are actually at

a negative and it's not a good thing

guys you got to be focused on how to

accumulate more assets but what I would

do is if you had a spreadsheet so what I

would do is determine put boots put

assets here okay and again you put your

cash here you'd put your real estate

stocks etc and then down here you know

you'd have the total put that number in

there

and then you do the same thing with your

liabilities liability is down here as

you lift whatever they are here and you

have your total rate and then in this

spreadsheet what you want to do is here

put the date so you can track it every

quarter all right

so let's say you do August 30th 2017 and

then maybe you're going to track you

know the next time every you know every

few months maybe the next time that you

do it is October 30th 2017 and then

maybe the next time you do it is January

30th 2018 and then the next time you do

it is a you know March 2018 etc and the

main goal guys is that you want again

this your net worth the total number to

increase the every time you're making

smart decisions with your money you're

getting further ahead you're building

that Network and guys I've been doing

this like I said since my early 20s I

started off ghazal now is that a

negative you know I I had debt I didn't

have much money I didn't have a lot of

assets but I understood this and so I

totally changed the way that I was

thinking with my money I started

accumulating more assets and saving more

money putting money aside and then using

that money to build my business and

invest in myself in different ways so

that I could accumulate more money and

then taking that money and buy more

liabilities and I would see every three

months that I would do this it would

slowly climb and at the beginning it's

very slow at the beginning you might not

have a lot of disposable cash you might

just be putting aside a hundred bucks a

month here and there might be slowly

increasing or you might be slowly pay in

debt paying off those liabilities in the

debt that you have but just seeing that

increase as time goes on and then as you

start making more money and more money

then there's a lot more they can do with

it and if you guys see my goals reports

what I'm more concerned about tracking

is my overall net worth and tracking my

for example you guys know I got my stock

investment portfolio where the money

that I make because I've got a very low

expense business and I've got great

profit margins I'm able to take a lot of

that and then invest it and save it and

make smart decisions with it I'm not

running a business that is at a deficit

I'm not running a business that's just

barely getting by that's not a business

that's not a lifestyle it's not a

situation you want to have and so

knowing that you might have to decide

that you have to

to cut out some expenses that you might

have you might have to change your

lifestyle so that you can get further

ahead in this way but the ultimate goal

guys is that time goes on you want that

to increase and you want to actually

have something you actually want to be

worth something because that's what's

going to determine your financial wealth

more than anything else so I recommend

guys that you guys practice like I said

on it every quarter is a great way to

start you can also track you know maybe

every year or so but I found that the

more that you manage something or the

more that you measure something the

easier it is to manage it and the more

awareness you have the more you're going

to focus on it and so I like doing it a

little bit more frequently but taking

take with what this with you will you

guys hopefully this can provide some

value to you and help you understand the

mindset and create a new ritual for

yourselves

when it creates comes to creating

financial wealth and abundance I'm going

to be going more in depth into financial

abundance and financial freedom in my

life mastery accelerator we've got a

live training session coming up in the

next few weeks where I'm going to be

going deep into understanding how to

manage money and what to do with it and

some of the strategies that I do and the

mindset that I have when it comes to

creating wealth and abundance and I

think this is one of the most important

things I do in my life because you know

I've seen so many guys that make money

online or they make money in their job

and often people are really impressed by

that and right now wow that's great guys

making a lot of money you know you know

in their salary or whatever it is but

again I that's not the number that I pay

the most attention to you know I don't

really necessarily care about the gross

revenue of something it's more about the

net and then what you do with that and

so I think a lot of people they can get

good at making money but they're not

that great at investing it and knowing

what to do with it so I want to go

deeper into that to educate people in my

life mastery accelerator so if you guys

are part of that then look for that

coming out pretty soon but I want to

thank you guys for watching this and

again hopefully this is giving you some

value today and hopefully some of you

implement this into your life if you

guys enjoy this video leave a thumbs up

subscribe for more videos and I'll talk

to you guys again soon take care

you

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