THE NET WORTH STATEMENT

Your net worth is the difference between all the things of value that you own and all the debts you awe or in financial terms it is your assets minus your liabilities. When calculating your net worth each item should be in their fair market value.

The net worth statement gives you a snapshot of your financial condition at this moment in time. This will tell you whether you owe more than you own or vice versa. Exercise this once a year. Use it as a starting point, a baseline against which to measure future progress and as a tool to identify your weaknesses then seek solutions. If you find that your liabilities are greater than your assets then it is time to put yourself on a diet