NET WORTH-WEEK 2
DETERMINING YOUR NET WORTH
By: Barry G. Allen- President & CEO
Remember from the previous lesson your net worth is the difference between the current value of everything you own (assets) and the current balance due on all your debts/obligations (liabilities).
How do I determine my current net worth? The best method is to prepare a statement of your net worth. To facilitate and simplify this, contact our office for a net worth worksheet.
First, list the value of each asset you own. The value listed should be its current market value, which is the value at which it could be sold. The total of this list represents your total assets. If you are married, list individually owned and jointly owned assets.
Second, list the current balance due on each debt you and/or your spouse owe. The total of this list represents your total liabilities.
Third, subtract your total liabilities from your total assets the result of which is your net worth. Hopefully, the balance is positive, which means your assets exceed your liabilities.
Prayer Focus: Ask God to help you to commit back to Him the resources He has entrusted to you, and to pledge to Him to continue to be serious about financial planning and money management from a Christian perspective.
Next Week: How Much Should Your Net Worth Be?
The information in this article is provided as general information and is not intended as legal or tax advice. For advice and assistance in specific cases, you should seek the advice of an attorney or other professional adviser.