Do you know how much you're worth?

I know, it's a catchy title that might offend some of you. I know you're worth much more than the amount of money you have in your account.

But, do you know how much asset you have? Do you know your net worth?

Your net worth is simply your assets minus your liabilities. Knowing it is good to know but the most important thing is to know the trend of it.

Is your net worth increase or decrease over the years?

This is really important. If you read my previous article http://pinoyfinancialcoach.blogspot.com/2015/05/middle-class-vs-rich-people.html I mentioned that rich people collect assets. In that case better if you know if your assets or net worth increase over the years.

Start a new Excel document where you state all your assets:

- House
- Bank accounts
- Saving accounts
- Stocks
- Bonds
- Cars
- Jewelry

Total the amount and subtract that total with your total liabilities.

Liabilities are:

- House mortgage
- Car loan
- Student loan
- Money you owe
- etc.

The result is your net worth.

Then do this exercise each year and calculate how much does your net worth increase or decrease over the years.

Better, set a goal of increasing your net worth by let's say 5% every year and use your Excel sheet to see if you reached your goal.