When I meet new clients for the first time, there’s a lot to go over. I need to hear all that’s going on in their financial life before I can start to make recommendations and a plan to improve the situation. What’s the total amount of debt you have? Who all do you owe money too? Many times, they don’t know which isn’t a big deal because, of course, they can get all the information, but why not have it in one place, a place that shows your whole financial picture. The easiest way to figure out your financial life is to know your net worth. Your net worth is basically the cash you’d have left over after selling all your worldly possessions and paying back everyone your owe. It’s your financial worth. You’ll need to know all of your assets first, everything you own that’s worth something. Then all the liabilities, i.e. money borrowed. Subtract your liabilities from your assets and you have your net worth!
Here’s an example to give you ideas and help get you started.
