Cashtoons

Finding your Net Worth

October 29, 2021

So often when faced with scary things,

fighting creditcards

We all do this,

ostrich

But, if we take our heads out of the sand, we will actually be less stressed in the long run. So this Halloween be brave.

brave

This is just the start of a journey. Knowing where you’re going requires knowing where you are.

map

Which means calculating your net worth.

computer

What you own - what you owe = net worth.

Add up all the things you own including money in your 401K, investment accounts, and bank accounts. If you own your car, include it’s current market value (not what you paid for it).

car

If you own your home, subtract what you still owe from its current market value.

home

After you have added up everything you own, subtract what you owe. Credit card balances:

credit cards

Car payments, you name it. Once you know your net worth, you have a starting point! Come back next week to find out why this is key.

sources

Why Didn’t They Teach Me This In School by Gary Siegel

The Boglehead’s Guide to Investing, 2nd Edition by Taylor Larimore, Mel Lindauer, Michael LeBoeuf


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