Net Worth: You Can Control Your Value in Both Love and Money (BlackEnterprise.com)

Be the captain of your own ship

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Financial net worth is one of the things a lot of people have a desire of building, but many have trouble successfully doing so. The concept of assets and liabilities can be intimidating to the common person, but once understood, it can serve as a valuable lesson in helping people reach their financial goals.

Your financial net worth is calculated by subtracting your liabilities from your assets. You WANT to have the total value of your assets to exceed your total liabilities. This means you should strive to build your personal savings, investments and positive equity real estate holdings. You should also aim to reduce the amount of your liabilities. Eliminate credit card debt, outstanding loans along with any other expenditures you have to pay out. Maximize your assets, while minimizing your liabilities is the simple formula for creating a positive net worth.

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