Figure Out What You're Worth

In a lot of ways, you are your own little company: You, Unlimited.

Like a company, you should have a balance sheet that tells you what you're worth. That means your assets minus your debts. The bad news is that this can be a sobering experience. The good news is that it's the first step in moving toward your financial goals, and it will no doubt spur you to trim some costs.

To add up your assets, list the current value of the following:

Taking Inventory: Assets Filling out your personal balance sheet can help you focus
Cash in bank accounts:	_______________
Cash in money market accounts:	_______________
Stock investments:	_______________
Bond investments:	_______________
Other investments:	_______________
Life insurance (cash value):	_______________
Company retirement account (401(k), 403(b), etc):	_______________
Individual retirement account (IRA, Keogh Plan, etc.):	_______________
Pension or profit-sharing account:	_______________
Money owed you:	_______________
Your home:	_______________
Other property:	_______________
Valuables or collectibles:	_______________
Car(s):	_______________
Other:	_______________
Total Assets:	_______________

Some people would also have you list more personal belongings like jewelry and furniture. Feel free to do so. I leave it out because I don't typically see those items as particularly marketable, except in dire situations. And even then, estimating their value assumes you know what you could earn from a yard sale or pawnbroker.

Now, for the darker side of your financial life, debts. For each of the following, list what you currently owe:

Taking Inventory: Liabilities A balance sheet can help you get your house in order
Mortgage(s):	_______________
Bank loan(s):	_______________
Car loan(s):	_______________
Student loan(s):	_______________
Credit card(s):	_______________
Alimony or child support:	_______________
Tax bills:	_______________
Income:	_______________
Real estate:	_______________
Other:	_______________
Other loans or liabilities:	_______________
Total Liabilities:	_______________

For the final answer, simply subtract your liabilities from your assets. The number you're left with is your net worth. Some have the superficial attitude that money is life's scoreboard. Whether you buy into this idea, this figure is your current score. Just remember that the game isn't over.

10 Things You Should Do Before You Invest

• Figure out what you're worth.
• Set your goals and figure out how much they cost.
• Spend less than you make.
• Build an emergency savings fund.
• Pay off your credit card debt.
• Insure yourself against the unexpected.
• Contribute to tax-deferred retirement plans like 401(k)s and IRAs.
• Consider using software to keep track of your money and help with your taxes.
• Be your bank's thriftiest customer.
• Check out your credit report.