How to Calculate Your Net Worth Arvada CO

Steps

1. Make a list of everything that you own, that has RESALE VALUE. If you could easily sell it, count it. If you would need to take it to a charity shop to dispose of it, ignore it.
2. Figure out Assets. This might include property (buildings or land), cash in the bank, shares in quoted companies, hard assets (gold, silver or jewellery), unit trusts or mutual funds, shares in unquoted companies (a family business perhaps), collectibles and bonds.
3. Place an approximate value next to each item on the list that you just made. If you can make an exact valuation (with stocks and shares, for example) that is great, if not, just try to use your 'best guess'.
4. Make a list of any and all debts that you owe. This will be much easier to value accurately, since you should be able to establish quite quickly how big your credit card balance, etc really is.
5. Recognize from this second list,that you are now left with two sets of numbers, assets and liabilities. By deducting one from the other, you can see how much you are 'worth'.

Tips

• Enter these figures into a ledger. Update it monthly. It will be rewarding to see your situation improve over time.
• Calculate this figure once EVERY month. It helps to keep you motivated and focused on becoming worth a little more each week and month.

Things You'll Need

• Ledger book
• Calculator
• Pencil

Sources and Citations

• For more tips and ideas about financial planning topics, visit http://www.FreeFinancialGuide.net

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