Net worth is the difference between what you own (assets like cash, investments, and property) and what you owe (liabilities like debts and loans). A positive net worth means your assets exceed your liabilities, while a negative net worth indicates the opposite. Tracking your net worth helps you assess your financial health, monitor progress, and set goals like reducing debt, building savings, or growing investments, ultimately guiding you toward long-term financial stability.
Amount of money in your checking account(s)
Amount of money in your savings account(s)
Amount of money in your retirement accounts such as 401k, IRA, or other accounts
What is the value of your house and other real estate?
What is the value of your cars?
Any other accounts such as jewelry, stocks, bonds, etc.
Amount of money you owe on your credit cards
Amount of money you own on your car(s)
Amount of money you owe on your mortgage(s)
Personal debt that you owe such as family or friends
Amount of money you owe on your student loans
Amount of other debts (medical bills, HELOCs, etc.)
Knowing your net worth is the first step—now let’s map out a strategy to grow it!
Kickoff Your Future***I don't assist with investing, taxes, or insurance
Assets are everything you own that holds financial value and contributes to your overall net worth. They can include things such as cash, investments, property, and personal belongings.
Liabilities are amounts you owe to others that can decrease your overall net worth. These include debts like credit card balances, student loans, and mortgages. Managing liabilities carefully is crucial to ensure they do not surpass the value of your assets and to maintain financial health.