July 20, 2018
What is Net Worth? Why It’s Important, and How to Calculate It.
Simply put, net worth is your financial assets minus your debts, or the difference between what you owe and what you own. Net Worth is an important number to know when beginning your search for a franchise to buy. Knowing this number is the first step in identifying franchises that could be a business match for you.
As with any big purchase, you need to know your budget and your net worth is the number that helps you begin to frame what that is. Franchises and business opportunities often require a minimum net worth to invest as a franchise owner. If you don’t know what is reasonable for your current financial situation, you will certainly waste lots of time getting excited about businesses you cannot afford, or qualify for.Interested in calculating your net worth now? Use this handy net worth calculator to figure your value, or open the info-graphic to find out what 10 items you need to know before your start crunching the numbers.
If you don’t have enough money saved up to buy the franchise you have always dreamed of owning, don’t fret. Start saving now. Small changes in habits on a daily basis can get you to your goal, and using this net worth calculator will help you see how much progress you make. Here’s some tips to get started saving for your dream franchise:
- Keep track of your spending to minimize spending on silly things.
- Set up short term weekly or monthly goals instead of yearly so you can see progress faster.
- Evaluate easy ways to save small amounts of money that don’t really impact your lifestyle.
- Set up automatic transfers of money to a bank account you do not touch. Out of sight. Out of mind.
- Remind yourself as often as necessary, this is something you set out to do, and you can do it!
About the Author - Kelly Mangum
Director of Marketing at Franchise.com & Franchise Solutions. Experienced at lead generation & project management. Mama of 2, wife, runner, gardener, living just outside of Portsmouth, NH.