Keeping track of your net worth can help you be better with money: Here’s how

Keeping track of your net worth can help you be better with money: Here’s how

Dubai: You may have heard of net worth being calculated for either millionaires or billionaires, but did you know that you can not only calculate your net worth, but also how keeping track of it can actually help your spending? Here’s how. Your net worth is simply an accurate snapshot of your financial situation and is a single number that shows the value of everything you own, minus how much you owe. In technical terms, it’s the sum of the value of your assets after deducting the value of your liabilities. What are assets? Assets include pretty much anything you own or anything you’ve invested in that generates income. That could mean cash, bank accounts, investment accounts, home value, collectibles, real estate, stocks, bonds, and even cryptocurrencies, among others. “Knowing your net worth is important because it can help you identify areas where you spend too much money,” explained Mohammad Shaan, a Dubai-based wealth manager who became full-time advisor recently. “Just because you can afford something doesn't mean you have to buy it. To keep debt from accumulating unnecessarily, consider if something is a need or a want before you make a purchase. This is the real reason why knowing