Knowing Your Net Worth

Having a sense of what you own (your assets) and what you owe (your liabilities) is important because it provides some measure of your net worth, financial security and your ability to accomplish financial goals such as buying a home, starting a business, or retiring someday.

What Is Net Worth

Your net worth is quite simply your financial assets (for example, bank and investment accounts) minus your financial liabilities (debts such as loans and credit card debt).

Understanding The Importance of Savings

The Importance of Savings

To accomplish important personal and financial goals such as buying a home, starting a business, traveling, and retiring someday, most folks need saving money. Some exceptions do exist, such as those fortunate people who have trust funds or inherit significant enough sums that they don’t need to save money from their work earnings. But the vast majority of people must save in order to accomplish their goals.