In this week's episode, we are discussing how to calculate your net worth. It seems like a boring calculation, but knowing your net worth is a powerful tool in changing your financial future.
Welcome to the Balanced FI Podcast, episode 9! Thank you so much for listening in!
Calculate your net worth by subtracting your debts (liabilities) from your assets.
First, list your assets, such as real estate, vehicles, bank accounts, retirement accounts, investment accounts, and other valuables. Next list your liabilities, like your mortgage, vehicle loans, credit cards, personal loans, taxes owed, HELOCs, 401(k) loans, medical debt, and cell phone loans.
Make sure to also request your free credit report to make sure you have all your debts listed.
Read: Financial Security Step 4, Calculate Your Net Worth
Download: Calculate Your Net Worth Worksheet
Read: Financial Security Step 2b, Begin Saving for Retirement
Annual Credit Report