Weather you are trying to dig your self out of debt or already investing your way to millionaire status, it’s important to take the pulse of your financial health every once in a while. MoneyTrack outlines one of the easiest ways to get a crystal clear snapshot of where you stand today.
Add up what do you own? For example:
– Annual Income
– Savings/CDs/MoneyMarket Accounts
– Investment/Retirement Accounts
– Real Estate
Add up what do you owe? For example:
– Student Loans
– Car payments
– Credit Card Debt
Subtract your liabilities from your assets. Voilà… that number is your net worth.
In case you don’t have a calculator handy, Bankrate has a comprehensive net worth calculator. The goal is to have a positive net worth. If that’s not the case, at least you now know where you stand and can start to get a grip on your finances.