While your finances may not cause night terrors, a lot of us are concerned about money. 77% of participants reported feeling anxious about their financial situation, according to a Mind over Money survey by Capital One and The Decision Lab. Furthermore, 68% of Americans worry about not having enough money to retire, 56% are concerned about keeping up with life’s costs, and 44% are worried about managing their debt.
In addition, 58% of respondents said finances control their lives. And, 52% of respondents find it challenging to control their money worries.
How to Figure Out Finances
Despite these concerns, just how precarious are your specific personal finances? Well, here’s how you can figure out your finances courtesy of Investor.gov.
Ensure that you have an accurate understanding of your financial position. In short, this is what you own and what you owe. To make this easier, create a “net worth statement,” which is all of your assets on one side of a page. Then, on the other side, take note of what you own, aka your liabilities and debts.
Next, take your liabilities and subtract them from your assets. You’ll have a “positive” net worth if your assets exceed your liabilities. But, if your liabilities are more significant than your assets, you’ll have a “negative” net worth.
Keeping track of your net worth requires you to update your statement every year. You can turn a negative net worth into a positive net worth by following a financial plan. Your…
