How much are you worth?

If someone put an actual "price tag" on you, what would it read?  In other words, how much, in dollars and cents, are you actually worth?  If you don't know the answer to that question, there is a way you can find out.  A "personal balance sheet" is a financial document that defines the actual bottom line.  Creating a personal balance sheet is not a difficult process.  Here's 3 quick steps that will help you put one together today!A personal balance sheet is, simply, a list of assets and liabilities at a given point in time.  It defines a dollar amount for your "stuff".  That dollar amount is also known as net worth.  A personal balance sheet is a excellent tool for identifying specific areas of finances that need to be improved.  When using a personal balance, it is important to note that it should be assessed at regular intervals in order to be effective.  Depending on the specific financial goals that are being addressed, a personal balance sheet should be calculated monthly, quarterly or yearly.  In special circumstances, it could be calculated weekly.  To perform your own "net worth assessment", you will need to gather some information about your finances.  You can group the assets and liabilities in whatever way makes sense to you.  More than likely, you will NOT have all of either of the categories listed.  If you would prefer to use a form to fill out your calculations, the internet is a great source for blank "balance sheet" forms that will guide you. Step 1:  List and total the current value of the following assets:

• Cash on hand (including all checking, savings and money market accounts)

• Certificates of Deposit

• Primary residence

• Secondary residence

• Other real estate holdings

• Vehicle(s) - including boats, ATVs, etc.

• Personal Property (jewelry, clothing, antiques, home furnishings, artwork, etc.)

• Cash value insurance policies

• Retirement Accounts

• Annuities

• Stocks

• Bonds

• Mutual Funds

 Step 2:  List the total amount owed for the following liabilities:

• Mortgage(s)

• Vehicle Loans

• Student Loans

• Home Equity Loans

• Home Equity Lines of Credit

• Credit Card Accounts

• Unpaid taxes

• All other "personal debt"

Step 3:  Subtract the total owed (Step 2) from the total value of assets (Step 1).  The number that is left is your net worth! If you have never calculated your net worth or if it has been awhile since you did, take some time today to see where you stand with your finances.  You may be surprised at how much your price tag would actually read!