HOW MUCH ARE YOU WORTH?

A good place to begin, is to figure out how much you are worth at this moment.  In order to calculate your net worth, you will need to understand these three terms: assets, liabilities and net worth. 

They make up this very important formula: 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 possessions (like your car, household furnishings and clothes) are assets, but they aren’t wealth-creating assets because they don’t earn money or rise in value. A new car drops in value the second it’s driven off the lot. Your car is a tool that takes you to work, but it’s not a wealth-creating asset.

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.

Click on the image below for a printable view to find out how much your are worth -- Assets, Liabilities and Net Worth.

(Source of above information and Asset, Liability, and Net Worth form below: Federal Reserve Bank of Dallas; Building Wealth Brochure; https://www.dallasfed.org/~/media/documents/cd/wealth/wealth.pdf)