3 Steps to Calculate Liquid Net Worth
Liquid net worth
is simply the amount of cash you would have available after selling all of your
and paying off your
Liquid net worth is defined as:
Liquid Net Worth = Liquid Assets – Current Liabilities
If your liquid net worth is low or even negative, don’t despair. Tracking your net worth is the first step toward improving it. Next, set a goal to increase it. There are many ways to improve your net worth!
I always set a goal to pay off my credit card balance in full every month. Not only is it high-interest, expensive debt, it also contributes to your liabilities and impacts your liquid net worth.
Lower Your Expenses
There are many other things you can do to lower your expenses, but just like with your net worth, it is hard to reach your goals unless you track your spending and set a budget.
In my own financial journey, I’ve focused heavily on real estate investing and other side hustles to add to my income.
Increase Your Income
Focusing on your career is another great way to increase your income.
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