Your Net Worth: It’s the Engine to Financial Independence
Figuring out your net worth is an important step in gaining financial freedom. In a nutshell Net worth is an important calculation because it dictates how much income you'll have in retirement. Add up all of your assets and subtract out all of your debts. What’s left is your net worth. Ideally, you want to see a positive number there, but based on what stage of life you are in a negative number can be OK! This figure simply tells you how close you are to financial independence; no big deal. Your net worth will show you what retirement will look like. Your net worth tells you how close to FIRE you are. How? Take your net worth and multiply by 4%. That’s the amount of income your net worth can afford to pay out each…
