Hi there! As promised in my July Preview, I did say I would plan on discussing finances.
Finances can be complicated for some people, and that’s okay, because there is a lot of resources that can you further understand the terminology, and discover ways to save more money.
Finances is definitely the top three things that most couples argue about the majority of the time. But just know that everything has a solution.
To understand your net worth, you must do some calculations.
Step 1. Calculate what you own
Cash in your bank account(s)
RRSPs, or a 401K
Value of your house
And or any other property you may own
Book value of your car
Add everything up to get a total of what you own
Step 2. Calculate what you own
Line of credit
Any other loans
Money you owe to family and friends
Add everything up to get a total of what you owe.
3. Add the two categories up
So say for example you own $5,000, and what you owe $3,600, your net worth is $1400.
5000 – 3600 = 1,400
If you ended up with a positive number, that means you own more than you owe. If you ended up with a negative number, it means that you owe more than you own. And that’s okay, because there are ways to cut back on debt. And please know that things can always get better from here. Do not fret, instead start paying off your debt.
4 thoughts on “Statement of Net Worth”
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