PERSONAL FINANCE BASICS
4 Financial Activities to Finish Out the Year
(Or to start a new year fresh)
The end of the year is a time to reflect, not only on our personal and professional goals, but also on our financial goals. We may not be professional financial planners, but we can have financial literacy as part of our identity.
In that spirit, here are 4 activities you should perform before the year ends:
Calculate (and Compare) Your Net Worth
If you are not familiar with “net worth,” let me provide a quick explanation.
Net worth is how much value is left in the assets (things you own) after you have subtracted all your liabilities (amounts you owe).
There are different types of net worth though. You can have a total net worth or even a liquid net worth (here you only calculate the assets that can be converted to cash quickly — as in within 3 months).
So why it is important to calculate your net worth at the end of the year?
Well, it helps give you a snapshot of how you finished the year. If you don’t calculate it at the beginning of the next year, you can always just compare the net worth from…
