Report cards, progress reports, etc. all tell us how we are doing in some segment of our lives.
So how are you doing financially? How do you measure your progress?
Have you ever sat down and examined how you stand financially? If not, now would be the perfect time with the close of 2013 just a few weeks away.
Year-end statements will be delivered early in January so get a pen and pad to make two lists: 1) all the things (assets) you own and 2) all the things you owe.
You may own a car, a boat, a house or condo, a 401k, an IRA, some land, gold jewelry, artwork, stocks and bonds. List the value of these items in one column; add it up.
The second list will show all you owe: student loans, mortgage, home equity loan, credit cards, personal loans from friends or family. Tally these values.
Now subtract the amount owed from the amount owned - ta da! there you have your NETWORTH. You have just produced your very own Networth Statement!
That number is just a snap-shot in time - today. The number will constantly change because you are earning and saving, because investment values fluctuate daily, and because you are paying down your debt.
The trick is to track this number consistently - once a year, semiannually or quarterly. Once or twice a year is best. This is how you know if you are making progress - or not. You want the numbers to grow and improve. If that is not happening, figure out why and make some changes.
Numbers don't lie - they provide information - you make the decisions.
