CFCCU Financial Tip of the Day:
Know Your Net Worth
Your net worth is simply what you own less what you owe.
It is recommended that once a year you list all your assets: bank accounts, the house and its contents, vehicles, any investments, , pensions or rental properties and so on. Then do the same for liabilities: mortgages, car loans, credit-card debt and anything else. The difference between the two is your net worth.
From year to year you want that net worth or bottom line to grow. This gives you a snapshot of where you are and a starting point to figure out what needs to be done.
The only way to improve you net worth is to add to your assets or reduce your liabilities.