What is Your Net Worth?

What is Your Net Worth?

By Keith Bunn Jr.

June 16, 2013

Good morning again,

First off, I'd like to wish all dads out there a very Happy Father's Day! This week's blog is going to be a shorty but goody.

How to Figure out Your Net Worth

How you figure out your net worth is relatively simple. Take a sheet of paper and list everything you have that has any kind of value to it. Whether it has debt attached to it or not. If you have any credit cards with outstanding balances on them, list them too. Here is an example...

Item                       Value      -       Debt       =        Equity

House                   $200,000        $75,000          $125,000

Car 1                         $3,000          $5,000             -$2,000

Car 2                         $1,000                 $0              $1,000

Savings accounts

Checking accounts

Credit card 1

Credit card 2

I think you get the picture. Once you have made your list, you add up and/or subtract everything in the "Equity" column. Whatever you come up with at the bottom is your net worth. If that number just so happens to be a million dollars, you are a millionaire. If your number is a negative number... well, it looks like you have some work to do. The math part is simple. It is remembering what all you have and looking up what they are worth that is going to be the most time consuming.

The reason I do this is to give people hope and to try to inspire others. To make them think about their finances, whether they are young or old, so they can win financially.

If you have any questions for me about my posts or about your finances, you can call me at (616) 454-2046 or e-mail me at cavuscoaching@gmail.com. You can also find more money news, facts and ideas, on my Facebook and/or Twitter pages. I'd be grateful if you followed me. Thank you!