Your Net Worth

One of the best indicators of your financial position is the net worth statement and can help you determine how far you are away from your financial goals.

Net worth is calculated by subtracting all you OWE from what you OWN and is a useful figure to know when you are:

  • Borrowing money and applying for a loan.
  • Settling a divorce.
  • Writing up a will.
  • Determining insurance needs.

To work out your net worth you need to list all of your assets – the financial and material possessions you own that have monetary value. These must be valued at the current market value and not what you think they are worth. Assets include items such as:

  • Cash on hand or in the bank
  • Stocks, bonds and mutual funds
  • Cash value of any life insurance policies.
  • Money that is due to you.
  • Home and other real estate interests.
  • Cars, trucks and other vehicles.
  • Home furniture, antiques, jewellery, coins, artwork, furnishings etc.
  • Annuities and retirement plans.
  • Business interests.

The next step is to list all of your liabilities – the f...

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