Introduction to Personal Investing

The Basics

Why is knowing my net worth important to attain my financial goals?

Understanding and computing your net worth provides instant feedback as to your ability to save money, shows you how indebtedness may drain your savings, and fund the costs of your borrowing to cover expenses. Knowing your net worth also provides you with a way to visualize how you, in certain conditions, create wealth through borrowing, especially if you borrow money at interest rates that are low enough, and invest this cash in, for example, a real estate market that has increasing values over time.


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