So what are you worth? The golden rules for self-valuation; How do you calculate your total net worth? Kathryn Gaw sums it all up.
Byline: Kathryn Gaw
If I had a pound for every time I heard a person described as being
“worth their weight in gold”, then I’d be well on my way
to building that gold statue.
But with gold prices finally starting to wane, is this actually
becoming an attainable financial goal? In a word, no.
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), the average weight of a British man is 83.6kg, while the average
woman weighs 70.2kg.
As of February 21, 2013, gold was trading at PS33,129 per
bit of quick maths tells us that the average man would need
PS2,769,584.40 to literally be worth his weight in gold, while the
average woman would need PS2,325,655.80.
Don’t have a spare two million knocking around? You’re
certainly not alone, but you may be worth more than you realise.
Are you a secret millionaire? Last year, the ONS published a report
suggesting that one in 10 families are millionaires when all of their
assets are taken into consideration.
With a triple-dip recession looming and a pension crisis heavily
rumoured, there has never been a better time to calculate your net worth
and get to grips with your finances, whether you have already reached
retirement, or are simply dreaming of it.
First up, make a list of your
. Do you own your house
outright? Do you know how much its worth? As of February, the average
sale price for a house in the UK was PS238,293. If you don’t want
to pay to have your home valued, you can use Zoopla’s sold house
prices tool to get an idea of the value of similarly sized homes in your
Yes, the property market is still in turmoil, but the latest data
suggests that mortgage lending is up, particularly in the buy-to-let and
With mortgages at their lowest ever rates, the stage is set for an
in the market. If you are considering a move in the near future,
this could be a good time to start sizing things up.
Next, take a look at your pension pot (or pots). Whether you are
still paying into them, or taking an annuity, you should be able to get
an idea of your total private pension savings.
The average UK pension pot is thought to be worth around PS150,000,
although this will vary greatly depending on how long you work and how
much you put away.
Calculating the value of your savings should be relatively easy,
but you may be forgetting about an old account or two.
National Savings & Investments offers a free tracking service
the country’s building societies, banks and post
offices to find any dormant accounts.
Now look at any other items of value. Most jewellers will value
your jewellery collection for between 0.5 per cent and one per cent of
the total value of your items, while many insurers will automatically
value your car when renewing your policy.
If you have any collectables, antiques or art pieces, a browse
through the Sotheby’s archives should give you an idea of the
current asking price, while eBay can be a competitive marketplace for
more niche items.
Credit – debt = your total value You should now have your gross
Now all you have to do is deduct your debt. Are you still paying
your mortgage? Do you have any outstanding student loan debts? Have you
paid off your credit cards, or are you paying back any other personal
loans? Once you have these two figures (your gross asset value and your
total current debt), simply deduct the debt from the credit and you will
have your personal bottom line – your total net worth. If this is a
positive figure, your new financial knowledge will help you to make
smart financial decisions in the future.
If it is a negative figure, you need to seek professional financial
help immediately, if you haven’t already. Moneyadviceservice.
org.uk is a free financial advice service which can help you to
budget within your means.
So how do you stack up against your ‘solid gold’ value?
Are you a goldfinger, or a larger-than-life statue? In the current
economic climate, everyone wants to be ‘gilty’.
Are you sitting in a golden
? There are some simple ways to