If someone were to ask you how much money you make, most likely, you could answer off the top of your head.
Many people underestimate the importance of calculating and tracking their net worth.
According to the Kentucky Society of CPAs, keeping track of your net worth is like having a financial compass, leading you on the right path to building wealth. To calculate your net worth, begin by adding up the value of all of your assets. Start with your primary residence and add the value of your vacation home and any other real estate you own. To determine the current market value of your property, research recent sales of similar properties in your area or consult with a real estate agent. Next, add in the current value of your investments including stocks, bonds, and mutual fund shares, as well as retirement accounts you hold.