How to calculate your net worth

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Total of all your Assets – Total your Liabilities.

It means it you were put on sale, how much you would be worth in rupee.

Asset: Bank Balance, Bond’s, Equity, Mutual Fund Investment, Property, PPF / EPF, Gold, FD’s

Liabilities: Home loan, Credit card loan’s, personal loans, outstanding premiums etc difference is your net worth.

Thumb rule:  Ideal net worth = (your age  x  Gross Annual income from all sours except in heritance) / 10;

Eg. if you are 30 & earn Rs 10 lakh a year = Ideally you should 

have a net worth equal to or more than Rs 30lakh.

It should be calculated at least once a year to know the trend of 

your finances.

How to increase your net worth?

1.   Reduce your debt’s

2.   Make smart Investment.

3.   Reduce expenses and increase savings