Finding your Net Worth

This blog will explain to you, using simple terms, how to put your financial life on track. Everybody has problems with money, and the lack of time, and maybe the lack of simple tools and knowledge will result in a totally life disaster.

We will start checking in depth your financial condition. This blog will always explain with a lot of details and without technical terms, relax …

Let’s check your net worth. What is the value of your assets and your debts?

So, in a simple way, your net worth = your assets – your liabilities

So, using a piece o paper, or if you know how to use a computer worksheet like Excel, Open Office Calc, or even the excellent online google Docs (http://docs.google.com),  lets start:

Checking your Assets: (that is easy)

Asset                              Value

Home(s)
Auto(s)
Jewelry(s)
Other properties
Retirement accounts
Total Assets

Checking your liabilities: (that will take a long time, maybe days)


Liability                           Value

Credit card debt
Other charge card debt
Income taxes payable
Bank loans
Insurance policy loans
Car loans
Student loans
Home mortgage
Other property mortgage
Other loans
Total Liabilities

You really need to know all of your debts, don’t try to do this task quickly!

If you are ready, now this formula below will determine your net worth:

Your net worth = your assets – your liabilities

If your net worth is negative, don’t worry, it is absolute normal and this blog will help you put your finance on track.

Congratulations, you completed the first step, now you know your NET WORTH.