It was interesting when I was researching net worth that 99% of Google searches were seeking the net worth of celebrities.
Thousands of people were searching daily for Lil Nas X net worth, Tfue net worth, Nick Jonas net worth, and Kylie Jenner net worth. Don’t worry, I have done it myself!
It’s always compelling to learn how much celebrities are worth.
But let’s stop worrying about Tfue net worth, what’s your net worth?
If you have NO CLUE who Tfue is, he is a Twitch Streamer, internet personality, and professional Fortnite Battle Royale esports player.
What’s your Net Worth?
Your net worth is simple to calculate. It’s your assets minus your liabilities.
Add up your assets and subtract your liabilities. The resulting number is your net worth.
Here is a simple-stupid example:
If your home is worth $200,000, your car $30,000 and your savings account $5,000, your assets total $235,000. If your mortgage is $180,000, your car loan is $25,000 and your credit card debt is $5,000, your liabilities are $210,000.
Your current net worth is $25,000.
Congratulations, you are in the black – barely positive!
Don’t worry though. Many people are unpleasantly surprised to learn their net worth is either a negative number or barely positive.
This can happen if you, for example, bought your home just before a market decline, have credit card debt, or if you live paycheck to paycheck.
Now if you want to calculate your TRUE net worth. Which is a complicated task. I recommend Personal Capital’s FREE financial tools.
They make it simple-stupid-easy.
Add all your investments, bank accounts, credit cards, and other financial accounts. Displayed is your net worth in the upper left-hand corner (shown below) of your personalized dashboard.
Why is your Net Worth important?
If we find Tfue net worth important, why not your own?
In a world where wealth is measured in all sorts of ways, such as net worth. It’s more important to take stock of your own wealth in real terms. Here’s why:
Compare your Net Worth to others
Comparing your wealth to the wealth of someone else is impossible. Some people might look wealthy, but in reality, are in deep debt – yikes!
Knowing your net worth allows you to compare yourself to the average net worth within your age or income bracket. Take a look at the chart below which features median net worth data by household earning and age:
So, how do you compare? You’ll never know until you know your own net worth.
Something tangible to measure over time
Having many investments and income streams is fantastic, but makes it difficult to track over time.
Your money is spread all over the place, with multiple functions to measure gains and losses and a log-ins for each (making new passwords for days!).
Make it easy, by tracking your net worth with an online platform like Personal Capital. The FREE online software will merge all your personal financial information into a format you can understand.
Being able to see your number increase or decrease daily, weekly, or monthly can be depressing, but should be exciting! Increasing your net worth might not happen overnight, but should be a long term goal.
Personal Capital gives you something tangible to track and measures your net worth over time.
Net Worth and the Big Picture
Measuring your financial progress is important. Whether you’re pursuing retirement, financial independence or saving up for a house. But it isn’t the only reason to track your net worth.
We all know how investments can pull on our heartstrings. Its a roller coaster as the markets move up and down. Once you start tracking your net worth, you are no longer locked in your seat by the inevitable rollercoaster hills that lie ahead.
Tracking your net worth forces you to step back and take a look at the big picture. Don’t look at your net worth daily, weekly or even monthly.
If your net worth is going up each year, you’re doing fine.
Debts of Net Worth
Investing and building a portfolio of assets is the best way to build real, long-term wealth.
But what about your debts?
It’s easy to see your debt load as a consequence of your success, but that isn’t the best course of action. Fortunately, tracking your net worth has a way of putting those debts into perspective.
If you want to see for yourself, drop $10,000 over a weekend in Vegas and watch your net worth drop like a rock. If you use Personal Capital, your credit card balance will automatically update when you do. And not even YOU can hide from it.
But remember not all debt is bad. Thomas Anderson, a former investment banker and CEO of Supernova Companies, in his new book, The Value of Debt in Building Wealth. Postulates that consumers should not look at debt as a burden. But should rather embrace and accept it as a means of buying assets and reducing their tax bills.
Anderson argues that using debt to finance investments can produce “higher final balances than investments that are funded entirely with cash.” He considers debt that carries a low rate of interest to be “enriching debt.” Because this debt can allow the consumer to invest in other assets that produce a higher return on capital over time due to the power of compounding.
But, if you have a credit card or other high-interest debt, you need to eliminate it, because high-interest debt is the #1 threat to building your net worth.
Practice some extra frugality and put the money you save toward eliminating any credit card or other high-interest debt. It will save you hundreds or even thousands in interest payments. Then vow to use your credit cards for convenience or purpose only, paying the entire balance off each month.
Calculating and tracking your net worth is one important item in your financial toolbox. It should complement a budget and checked regularly. But as I mentioned, as long as your net worth is going up each year, you’re doing fine.
Remember that net worth, while a valuable indicator, does not give you the depth of information you need to fully assess your financial situation.
Someone who has a lot of low-interest student loan debt, for example. May be in a far better financial situation than someone with half as much high-interest credit card debt. Though their relative net worths may indicate otherwise.
So, what is Tfue net worth?