Do you know your net worth?
How to calculate your net worth.
When planning for the future and assessing your financial health, it is important that you know what the value of your net worth. Assets are monetary items (i.e. checking, savings, retirement, investment accounts), things you own (i.e. a home, a car, furniture or other items), and non-monetary assets (i.e. education) that can aid your family’s financial situation. Liabilities are debts that you owe (i.e. mortgage, credit cards, student loans, automobile/personal loans). Assets minus liabilities equal your net worth. For example, if I had $30,000 in assets and $26,000 in liabilities or debts owed, my net worth would be $4,000.
You can complete a net worth statement to help you determine if you have a positive or negative net worth. Essentially, a positive net worth is the goal. If you net worth is negative, you may want to think about ways to increase income so that you can decrease your debt. After completing your net worth statement, complete Michigan State University Extension’s Foreclosure Toolkit: Questions to Ask Yourself so that you can determine ways to improve your financial health.
Michigan State University Extension offers financial literacy and homeownership workshops throughout the year to help you become financially healthy. For more information about classes in your area, go to the events webpage or to the MI Money Health website. Additionally, you can take the Financial Health Survey at MI Money Health to access if you’re financially healthy and discover more ways you can improve your financial health.
Michigan State University Extension has released a new toolkit for homeowners who are experiencing or have previously experienced foreclosure. This toolkit will equip these individuals and families with tools to help them recover their financial stability, in the case that a recovery of their home is not possible. The toolkit is available to download free at the MI Money Health website.