Figure Out Your Finances

Before you can figure our where you want to get to - you have to understand where you are staring from.

You’ll need to figure out on paper your current situation - what you own and what you owe. You’ll be creating a “net worth statement.” On one side of the page, list what you own. These are your “assets.” And on the other side list what you owe other people, your “liabilities” or debts.

Your Net Worth Statement

Assets

Current Value

Liabilities

Amount

cash

_______

mortgage balance

_______

checking account

_______

credit cards

_______

savings

_______

bank loans

_______

cash value of life

car loans

_______

insurance

_______

personal loans

_______

retirement accounts

_______

real estate

_______

real estate

_______

_______

home

_______

_______

other

_______

_______

investments

_______

_______

personal property

_______

_______

total

_______

total

_______

Subtract your liabilities from your assets. If your assets are larger than your liabilities, you have a “positive” net worth. If your liabilities are greater than your assets, you have a “negative” net worth. You’ll want to update your net worth statement every year to keep track of how you are doing. Don’t be discouraged if you have a negative net worth. If you follow a plan to get into a positive position, you’re doing the right thing.