Understand your current financial health.  Financial Assets – Financial Liabilities = Net worth 

  • Assets – this is money you have in a bank, brokerage account such as stocks, bonds, mutual funds, money in retirement accounts such as IRA, 401k or 403(b) plans.  Assets also include your home, car, and items in your residence.   

  • Liabilities – these are items you owe money.  These are loans like auto loans, home loan, credit cards, student loans, money borrowed from friends or family, money borrowed from your 401k, etc.  

 

Account 

Value 

Bank savings account 

$   5,000 

Investments – Mutual Funds 

$ 10,000 

Total 

$ 15,000 

Employer 401k 

$ 22,000 

Home 

 

Total Financial Assets 

$ 37,000 

 

Loan 

Value 

Bank Credit Card 

$ 5,000 

Auto loan 

$ 7,000 

 

$ 

 

$ 

Total 

$ 12,000 

 

Net Worth 

Value 

Total Financial Assets 

$ 37,000 

Total Financial Liabilities 

$ 12,000 

Net Worth 

$ 25,000