Patricia Paul Properties

Patricia Paul Properties

Commentary on Tucson Area Real Estate, Home Ownership, Rental Homes, and Life around the Tucson Community
Tag » Net Worth
Dec 29, 2009
User Rating: / 0
PoorBest 

You've probably heard of the term net worth, but do you actually know what it is, and how to figure yours?  Simply put, net worth is the difference between a household's assets and liabilities.   To calculate yours, first get a piece of paper, and draw a vertical line down the center of it.

On the left hand side of the paper, begin to list any assets (things that you own); a brief description of them, and their current value.  This might be your home if you own it (or are paying a mortgage), vehicles, money in bank accounts, savings accounts, retirement accounts, stocks or bonds, and personal possessions (Be conservative; only include saleable items, and don't overestimate.)

On the right side of the paper, begin to list your liabilities (things that you owe).  This might include the balance of your home mortgage, balance of any vehicle loans, credit card debt, any outstanding personal loans, etc. 

Now total up both columns.  If the asset side is larger than the liability side (and hopefully it is), then you have a positive net worth.  If the liability side is larger than the assets, you have a negative net worth, and it's time for you to do what you can about that.

This is a good exercise to perform at least once a year.  Then compare your net worth to previous years to get a picture of your personal finances and where you're headed.

The Federal Reserve recently announced that the average net worth of households has increased by 5%.  This is probably mostly due to the fact that many stock prices rallied earlier this year.

If you'd like help estimating the current value of your home, call me.  I'd be glad to help!

Patricia Paul, GRI *** www.PatriciaPaulProperties.com *** (520) 548-2078


Patricia Paul

Patricia's Art Activities

Pat's Bead Making

You are here:

 

web R white

NAR_GRI.gif

bbb-badge-horz NARPM no text