Not Made Of Money

He says:

Once a year I like to do a Net Worth statement to see where we are financially.  A Net Worth Statement helps:

 1.  You to see the big picture.
 2.  You to stay focused and pay down or pay off your debt.
 3.  You to see where diversification is needed in your assets.
 4.  You to see that you are doing well and making progress.
 5.  You to see where changes are needed.

I like to do my Net Worth statement at the end of the year or the beginning of the next because all your year end financial information is coming to you anyway.

Write down or use a spreadsheet program like Excel or Quattro Pro.  Or, if you have Quicken, and you have entered all your data, just run the Net Worth Report.  Here’s how to do your Personal Net Worth Statement:

 1.  Put down all your assets first and total them. (Assets are ending
            balances of  bank statements, 401K, stocks, bonds, CD’s.  The value
            of your house, your belongs, your vehicles or anything of value.

 2.  Then put down all your liabilities and total. (Liabilities are your
            mortgage, credit card debt, home equity loans, car loans, or
            anything you owe on.)

 3.  Then subtract the liabilities from the assets and you have your
            Personal Net Worth.

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