1. NET WORTH
Knowing your net worth position pinpoints how good/bad you’re doing financially. Net worth is the cash value of your assets, after, subtracting liabilities. In other words, after subtracting what you “owe” to the bank from what you “own,” the remaining balance will be your +/- net worth.
The table below displays common types of Debts & Assets.
|Long/Short Term Bank Loans||Cash in Checking & Savings Account|
|Mortgage - Principal Residence||Home - Principal Residence|
|Debt on Auto||Certificates Of Deposit|
|Debt on Personal Property||Stocks - Bonds - Mutual Funds|
|Credit Cards||Real Estate|
|Other (i.e. Jewelry/Collectibles)|
2. KNOW YOUR NET WORTH
To pinpoint your exact net worth, print the Balance Sheet below, fill in your debts & assets. Then, subtract your debts from assets to know where you stand financially.
If you don’t know exactly where you stand financially (using ink on paper), you will not grasp the seriousness of your financial situation. Writing your numbers on paper is IMPORTANT. By now, you should start developing a higher sense of what must be done next. Perhaps, take some risks, change your ways, and develop new habits that can serve you in better ways. Remember, if you’re reading this, you are gifted with the ability to learn anything. Continue to counsel & enlighten yourself through reading.