What is Personal Net Worth
Your personal net worth is based on the value of all your assets minus the value of your liabilities. What would you have left after selling everything you own and then paying off your debts? That is your personal net worth, or PNW.
Your assets may include cash and anything you own that could be sold. Assets may also include the value of your home, your investments, and any valuable personal property you may have, like jewelry.
Liabilities are any debts or financial obligations that you carry. This could be credit card debt, your mortgage, student loans, or car loans. Liabilities also include debts or financial obligations related to your business or professional corporation.
Understanding your personal net worth will provide you with a high-level snapshot of where you are at in your financial journey. When you are aware of your PNW, you can make strategic choices to improve it based on your goals.
How to Improve Your Personal Net Worth
The steps you can take to improve your personal net worth depend on your unique circumstances. These steps could be:
- Growing your savings through investments that align with your goals, timeline, and risk tolerance
- Reviewing your discretionary spending to determine where you are able to spend less
- Consolidating and managing your debt more efficiently
- Improving the overall value of your assets, like your business, through strategic decision making
Personal Net Worth Advice and Accounting Support for Physicians
KWB Accountants & Advisors is pleased to offer you the business accounting services you need and the advisory support that will help you thrive. Benefit from a suite of customizable business advisory services and a team that will help you reach your potential and create the business and lifestyle of your dreams.
Book a free consultation to discuss your accounting and advisory needs and goals and to learn how KWB’s ONSight Advisory services can support you.