Knowing Your Net Worth

Knowing your net worth gives you a pretty good idea of how you are managing you money.  It will help you to know if you're meeting your financial goals.  If you subtract everything you owe from everything you own, you'll have your net worth or (Assets - Liabilities = NET WORTH)

So how do we calculate net worth? The process of fairly simple. Add up all of your assets and subtract your liabilities, the result is your net worth.  Assets are things you posess such as your home, bank accounts, saving accounts, retirement accounts, real estate investments, stocks, bonds, cars, and everything else you own. Your liabilities are everything you owe on such as your home mortgage, real estate loans, loans on retirement funds, car loans and any other debts you have.

By keeping track of your net worth on a monthly and yearly basis you'll know if you are moving in the right direction. One of the difficulties of knowing your net worth is determining the value of your assets accurately. For example how much is your home really worth? Get an accurate appraisal as we often think our home is worth more than it really is.

 By following this simple worksheet you can easily figure out your net worth.

Assets

Cash Assets

•    Checking account balance
•    Savings account balance
•    credit union accounts
•    Money market or Other money accounts
•    Life insurance Cash Value

Investments

•    Certificates of deposit
•    stocks or mutual funds
•    IRA or Keogh accounts
•    Pension
•    Other

Real Estate

•    Personal Residence
•    Second Home or Rental properties

Personal Assets

•    Cars
•    Collectibles
•    Gold and Silver
•    Jewelry
•    Antiques
•    Coins and Stamps
•    Campers / Boats
•    Other

Liabilities

Real Estate

•    Home Mortgage
•    Home Equity Loans
•    Other Real Estate Loans

Taxes Owed

•    Income Taxes Owed
•    Property Taxes Owed
•    Other Taxes Owed

Personal

•    Car loans
•    Alimony owed
•    Credit lines
•    Insurance Loans
•    Student Loans
•    Charge Accounts / credit card Debt
•    Insurance Payments Owed
•    Other

Subtract your total liabilities from your total assets for your Net worth.

Total Assets - Total Liabilities = Net worth

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