How Much Are You Worth?

One of the first things a professional financial planner does with a client is to create a balance sheet or statement of net worth.  You can do this yourself!

List all your assets including your retirement plans, your investment accounts, your home, personal assets, vehicles, bank accounts, cash in life insurance policies, cash under the mattress, value of jewelry, and anything else you value as a financial asset. 

Then, list your financial liabilities (debts) such as mortgage, credit cards, student loans, car loans and personal debts. The difference is your financial net worth. This is the number you want to grow every year.  The goal is to have your debts decrease and the value of your assets increase.  Updating this on a annual basis is an excellent idea. Get started today!