Calculating Your Net Worth

Every quarter, public companies produce a balance sheet for shareholders that shows the company's "book value" -- essentially the value of the company if you sold off all the assets and used that money to pay off all the debts. People and families have their own version of "book value" known as "net worth." It's one of the simplest financial calculations. Tally all your assets, and subtract all your debt, and what's left is your net worth -- how much you're worth. If your net worth is negative, well, then, you're carrying too much debt.

Assets
Cash Savings/Money Market Checking Certificates of Deposit Other savings-based assets (savings bonds, etc.) Life insurance, cash value Annuities, surrender value Investments Brokerage account Mutual fund account Stocks/bonds held personally Investment real estate Other Investments total Retirement accounts Keogh Sep IRA Traditional/Rollover IRA 401(k), 403(b), etc. Profit sharing Pension plan balance Other Retirement accounts total Market value of primary home Market value of autos Jewelry/precious metals/gemstones Collectibles Furnishings/art Other assets TOTAL ASSETS $ -

Liabilities
Mortgage(s) Auto-loan balance(s) Credit-card balance(s) Student loans Back-taxes owed Home-equity loan/line-of-credit Investment debt (margin)

Other debt owed TOTAL LIABILITIES NET WORTH (total assets - total liabilities) $ $ -

Adapted from "The Wall Street Journal Personal Finance Workbook," by Jeff D. Opdyke.

Copyright 2006 by Dow Jones & Co. Published by Three Rivers Press, an imprint of the Crown Publishing Group, a division of Ra

Worth

t for shareholders that shows the mpany if you sold off all the assets families have their own version of t financial calculations. Tally all your net worth -- how much you're ying too much debt.

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y Jeff D. Opdyke.

an imprint of the Crown Publishing Group, a division of Random House Inc.