When Was the Last Time You Did a Net Worth Statement?

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Taking just five minutes to calculate your net worth can be one of the most crucial steps for managing your finances. Here’s how you can do it on a simple piece of paper:

  1. List Your Assets
    • Cash: Include checking and savings account balances.
    • Investments: List stocks, bonds, mutual funds, and retirement accounts.
    • Property: Note the market value of your home, cars, and other real estate.
    • Other Assets: Include valuable items like jewelry, collectibles, and artwork.
  2. List Your Liabilities
    • Mortgages: Write down the outstanding balance on your home loan.
    • Loans: Include car loans, student loans, and personal loans.
    • Credit Card Debt: Sum up all your credit card balances.
    • Other Debts: List any other outstanding liabilities.
  3. Calculate Net Worth
    • Total Assets: Add up all the values from your assets list.
    • Total Liabilities: Sum up all the values from your liabilities list.
    • Net Worth: Subtract the total liabilities from the total assets.

Example

Assets Amount ($)
Checking Account 5,000
Savings Account 10,000
401(k) 50,000
Home Value 200,000
Car 15,000
Total Assets 280,000
Liabilities Amount ($)
Mortgage 150,000
Car Loan 5,000
Credit Card Debt 2,000
Total Liabilities 157,000

Net Worth: $280,000 (Total Assets) – $157,000 (Total Liabilities) = $123,000

Taking a few minutes to do this simple calculation can give you a clear picture of your financial health and help guide your future financial decisions.

Disclaimer: This guide is for informational purposes only. Consult with a financial advisor for personalized advice.

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