Читать книгу Finance & Grow Your New Business - Angie Mohr - Страница 39

How much are you really worth? You may be drawing a large salary from your business but if it all gets spent on current expenses, it doesn’t add to the value of your possessions. One of the most important measures in your personal financial planning is your net wealth. This is simply your assets minus your liabilities. Over time, your assets should grow and your liabilities should decrease, which decreases the risks you are exposed to and increases your financial stability. Ultimately, your net wealth is what you have to live on and then to pass on to the next generation.

It doesn’t have to be onerous to track your net wealth. You can simply write down your best estimate of the value of all of your assets and then the payout amount of all of your liabilities (i.e., the amount of money it would take to settle up your debts). You may also choose to use a software program that will track not only your net wealth but also your income and spending. It may also track your retirement savings. Popular programs such as Intuit’s Quicken or Microsoft Money make the tracking easy. If you do this on a regular basis (monthly or at least annually) you will be able to see how your wealth increases over time.

Your assets may include:

• Cash

• Portfolio investments (bonds, stocks, etc.)

• Your home

• Other real estate (cottages, vacant land, rental properties, etc.)

• Vehicles

• Savings (including retirement accounts and college funds)

• Your business

Your liabilities may include:

• Mortgage

• Credit card balances

• Personal loans

• Car loan

The higher your net wealth, the more likely a bank will look favorably upon your business as it needs financing.