Net Worth
Financial Wellness can be largely evaluated by three major numbers. Net Income is one of them.
Your disposable income and credit score are the other two numbers that can help you determine your current financial fitness and begin on a systematic road to financial maturity. I repeat this value for each of the three steps for emphasis.
As Defined in Accounting for Personal
Asset: A resource with economic value that an individual owns or controls.
Liability: Something for which one is obligated
Net Worth = Total Personal Assets - Total Personal Liabilities
GOALS: Build debt-free assets. Reduce Liability.
|
ASSETS - Market Value - Cash
- Checking/Savings
- Home (s)
- Time Share
- Other Real Estate
- Vehicle(s) ALL kinds
- Household Goods
- Furnishings
- Electronics
- Collectibles
- Sports & Hobbie Equipment
- Firearms
- Clothes
- Jewelry
- Any financial accts
- Bonds/Mutual Funds
- Stocks
- Retirement & Pensions
- Security Deposits
- Annuities/ IRAs
- Trusts
- Patents, Copyrights, Trademarks, Trade Secrets, Etc
- Licences, Franchises, Professional Licenses
- Support OWED to you
- Insurance Interest
- Claims
- Loans Due
- Equity of Business Assets
- Inventory
- Interest in Partnerships
- Anything else
|
LIABILITIES - Balance - Mortgage
- Real Estate Loans
- Vehicle Loans
- Department Stores
- Other Charge Cards
- Personal Loans
- Credit Cards
- Medical & Dental Bills
- IRS / State Taxes
- Other Taxes Due
- Child / Family Support
- Student Loans
- All other debts
|
