Let me begin by saying you are wonderful the way you are. Your value is your talent, skill and ability. Your gift of being able to create things is invaluable. I know, if only someone else would recognize that and drop large bushels of money at your door just for being you. Actually, that’s not so far-fetched as it sounds.

When David Bowie went public and offered to sell stock in himself by creating ‘Bowie bonds’ which Prudential bought, he became human capital.

But the definition of your net worth is more mathematical and material than putting a price on your talent. Your net worth is what you own minus what you owe. You take your assets (your assets include cash, of course, plus any investments you own, your personal property, art, clothes, and the equity you have in real estate) minus liabilities (debt) and that gives you your net worth.

Figuring out your net worth may also surprise you when you learn have more than you thought. No matter what the number, you’ll always want more. Why do we never seem to appreciate what we have? Either way this is a snapshot of your life at this time. The health of your finances can change. That means the diagnosis of your condition is reversible and not terminal. This is just a test of biopsy to determine what’s wrong. There is a cure that can make you (financially) healthy again.

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Your net worth should be one to three years of your annual income. More than three years is awesome!

What is your age?

What is your income? (before tax)

Multiply your age by your income

Divide the above number by ten.

Now double that number.

This is what your net worth should be now to get ready for retirement. Not that you want to retire ofcourse. Heroes don’t retire from their passion. Still, good to know when you have achieved financial freedom. How do you stock up?