Personal Finance

Start your Financial Plan

4: Calculate your Net-Worth.

Assets vs. Liabilities

Knowing where you stand financially is equally important and critical to making other financial decisions.

Creating a simple balance sheet itemizing your assets and liabilities will give you the answer.

On the left side, list all your assets in detail: Investments, bank accounts, savings, home value, etc.

On the right side, list all your liabilities: mortgages, auto and school loans, credit card debt, etc. Now, add up all your assets and subtract your liabilities. Voila 'Net Worth'.