February 22, 2014
When looking to improve your net worth, which is how you should gauge your financial progress, what can you do?
When looking to improve your net worth, which is how you should gauge your financial progress, what can you do?
You should look at your total and see what make up it. Look at the liabilities and see where you can cut down. If you decrees your debt your net worth will go up. Even if you have to take some of the cash you have at that time to pay off some of your debt you are better off not having that asset because you will no longer have interest on your debt you paid off. The ratio of assets to debt is always the most simple way to judge how you are doing, if assets are a much greater percent than your debt you are not doing to bad, your goal however is to have no debt as have a asset to debt ratio of 0.
Well said Garrett.