Understanding Net Worth

 Many people think that having so many properties gives value to their name but in reality what counts is one's net worth. The bottom value is the single most important value that one should look at and not the value of the assets one has accumulated. You may have four Jaguars parked at your mansion but all those are nothing if you have no net worth.

I was shocked when I computed my expected net worth. My computations resulted to about $ 85,000.00 based on my salary and age but to date I only have twenty something thousand in my name yikes. You might ask me why age becomes a factor in this equation. Age is an important factor because as time passes one should have accumulated that amount of money if you have a fixed amount of income like your salary. It means not only saving money but also earning from that savings. 

As Bob Proctor said "Money is not meant to be hoarded, it should be circulated." If you put your money in your bamboo alcansya (Pinoy style piggy bank) that amount you expect to have when that piggy bank is full is the amount you Morgan Wallen net worth dropped on it. Probably it is wise to save but there is also a wiser way to make use of that money. If you are familiar with the parable of the talents you will know why keeping money is wrong.

Likewise you must differentiate spending from circulating money; there's a thousand kilometer difference between this two. When you spend you let go of the money. When you circulate it means it comes back to you with additional money. Grow money; that what it means to circulate money. Putting it in a bank for 2-3% interest is not that bad, if you have a business plan that you think you can manage well probably putting your money there will be better. Investing on the other hand is for the long term thus it is important for you to know your net worth.