Your net worth is a snapshot of your finances. The picture will change slightly the next time you pay a bill and again, the next time you receive a paycheck. To determine your current magic number, the first step is to take a look at all of your assets, which are anything of value that you own. Make a list of all these items and next to each, list the amount it's worth. These typically include:
Cash -- any physical currency and coins you have
Funds in the bank -- all the money you have in a savings, checking, or money market accounts, and any certificates of deposit (CDs)
Stocks, bonds and mutual funds: also list savings bonds
Retirement accounts -- includes 401(k) funds, IRAs and any other retirement accounts
Life insurance -- counting any cash value you have in the policy
Motor Vehicles: the current blue book value of any cars, motorcycles, boats, RVs, etc.
Real Estate -- the current market value of property (house, condo, land, etc.) you own, even if you have a mortgage
Personal Valuables -- including the market value of jewelry, collectibles (from baseball cards to art) and furniture
Money you're owed -- as long as you have a reasonable expectation of being paid back
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment