taking stock
What’s Your Net Worth?
When calculating your net worth, make sure you include the present day value of each asset. For example, if you own a car, how can you decide what it’s really worth?
- It’s worth what you paid for it.
- It’s worth the amount you’d pay if you had to replace it with a brand new car of the same model.
- It’s worth what you’d receive if you tried to sell it right now.
“C” is correct. This is known as the “fair market value.” Once you determine your net worth, examine it closely. Is it positive or negative? If you’re “worth” less than you’d like, what can you do about it? Some factors that affect your net worth, such as a decline in home values, may be out of your control. But planning and careful money management can go a long way to making you more financially secure.