To make calculating your net worth very easy, use the Plan Well, Retire Well worksheet "Personal Balance Sheet." You'll find the worksheet under the Goal Setting section, in Step 2: Where Are You Now?, page 3.

A net worth statement is a snapshot of your family's current financial situation, balancing your assets and liabilities. It's your financial worth -- what you have after you subtract what you OWE from what you OWN. It's a good idea to stop and think about this once a year. Some people like to calculate their net worth while working on filing taxes.

To prepare a net worth statement, begin by listing everything you own. Use the "Personal Balance Worksheet" on University of Illinois Extension's Plan Well, Retire Well. http://www.retirewell.uiuc.edu/

List your financial assets and non-financial assets and it will automatically calculate your total assets. Next, list what you owe (your liabilities). Credit card balances or loans are liabilities. Again the worksheet on the University of Illinois Extension's Plan Well, Retire Well website will guide you as you calculate your total liabilities. http://www.RetireWell.uiuc.edu

By subtracting the amount you owe (all liabilities) from what you own (your total assets) you will have your net worth. The Plan Well, Retire Well website will also display a graphic picture of your assets and debt.

Knowing your net worth helps you plan your financial future. You should recalculate your net worth at least once a year. When you compare your net worth from one year to the next, you can see your progress toward meeting your financial goals and planning your retirement.

And, remember, give yourself a pat on your back as your net worth grows over time!

Source: Mary Ann Fugate, Extension Educator Consumer and Family Economics
Champaign Extension Center
University of Illinois
(217-333-4901)