Monday, March 28, 2011

Know Your Net Worth

If you don't know what your net worth is, it's time to find out. Net worth is the total assets of you or your company minus your liabilities. (It's what you own, less what you owe.)

It's a very simple metric, but essential that you know it.

I'm offering my simple Quick & Easy Net Worth Statement to all those who care to comment on my blog in the next week. It's a simple fill-in excel spreadsheet that will take a few minutes to complete.

Into the spreadsheet's top section, you will enter your bank balances (checking, savings, investments, etc); then you will input the value of your assets like home or car in the middle section; then, in the final section you will enter all your credit card debt, mortgage, car loans and student loans.

The resulting figure at the bottom of the spreadsheet will either be a negative figure or a positive figure. If the figure at the bottom of your net worth statement is a negative number you owe more than you own and it's time to start looking at ways to attack your debts.

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