Grow Your Money

How Much Are You Worth ?

Want to know if you're on track for meeting your financial and savings goals? One of the quickest ways to do so is to calculate your net worth. Your net worth is calculated by adding up what you own and subtracting what you owe. It's written in a formula as:

Assets - liabilities = net worth

A wealth-creating asset is a possession that generally increases in value or provides a return, such as:

  • A savings account
  • A retirement plan
  • Stocks and bonds
  • A house

Some belongings (such as your car, plasma TV and clothes) are assets, but they aren't wealth-creating assets because they don't earn money or rise in value.

A liability, also called debt, is money you owe, such as:

  • A home mortgage
  • Credit card balances
  • A car loan
  • Hospital and other medical bills
  • Student loans

Source: http://www.dallasfed.org/ca/wealth/1.html

Ready to figure out how much you're worth? This worksheet can help you create a personal balance sheet in just a few minutes. If you find you're spending more than you're earning, make an action plan to control expenses and increase investments. Start by creating (and sticking to!) a monthly budget.