Your net worth is your personal balance sheet that provides a snapshot of your financial position at that time. Net worth is all that you own less than all that you owe.
Here are the 10 key reasons why you need to know your net worth.
Pay down your high-yielding debt, typically your credit card debt, which uses the magic of compounding interest against us if we only make the minimum interest payments. Get rid of credit balances in full on a monthly basis.
You could pay off all or some of your mortgage debt if your interest rate is over 5%. If it is significantly above that, you should be seeking to refinance your mortgage. On the other hand, if you pay a low-interest rate, don’t make any changes.