Articles - Archived Money Matters

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Calculating Your Net Worth

Many of us don't know if we are on track to reach our financial goals. Are we saving enough for retirement or falling short? Will there be enough money for the children's college education? A net worth statement can give you a snapshot of your overall financial situation.

Calculating your net worth is quick and easy. It is simply a grand total of everything you own minus everything you owe. This statement will not take long to complete. Grab a piece of paper, a pencil and your most recent financial statements. Let's get started.

  1. Begin by listing the market value of your largest assets. These include things like your home, rental property, vehicles and boats.
  2. Now, referring to your statements, record the value of your liquid accounts. These include checking, savings, money market accounts, CDs and cash on hand.
  3. Next, write down the value of any pensions, profit sharing plans, 401(k)s, IRAs and life insurance cash values.
  4. Finally, estimate the value of your personal property. These items include jewelry, coin collections, antiques and art.
  5. Add up the value of these assets to get a grand total.
  6. Now, it is time to look at your liabilities. Write down the largest debts first, like home mortgages, and vehicle and boat loans.
  7. Next, list credit cards balances, as well as outstanding student and personal loans.
  8. Add up all of your liabilities to get a total.
  9. The last step is to subtract your liabilities from your assets to get your net worth.

Hopefully, your net worth is a large positive figure. If not, you may want to discuss your situation with a professional. If so, please contact your Credit Union at 877.367.5428. We are always happy to help!