If you have ever stopped at a rest area along an interstate you have probably seen the large maps on the wall with a big "X" marking where you currently are. "A net worth statement is like that "X" marking your current financial position," says Patricia Hildebrand Extension Educator for University of Illinois Extension. A net worth statement also provides a starting point for your future financial goals.

Hildebrand says, "Before you can plan where you are going in the future, you need to see where you are now. A net worth statement provides a look at all of your finances and shows you how much you are worth in dollars and cents."

To find your net worth, list all of your assets–the things you own. Next list all of your liabilities–the amounts you still owe. Net worth is the amount you get when you subtract everything you owe from everything you own. For example, if a family has

$150,000 of assets and $50,000 of debt, they would have a $100,000 net worth. If debts are more than your assets, which sometimes happen, your net worth will be a negative number.

Assets are any financial or material possessions that have monetary value. These must be valued at the current market value; not what you paid for them, or what you "hope" they are worth. There are cash assets including the cash in your pocket, checking and savings accounts, money market funds, the cash value of life insurance policies, certificates of deposit, stocks, bonds, mutual funds, annuities, retirement plans, employee benefits, money others owe you, your home and other real estate, vehicles, household furnishings, antiques, jewelry, books, and collections.

Liabilities are the financial obligations or debts you owe to other persons or institutions. This category includes mortgages, loans, credit card debts, taxes, and unpaid bills.

Total your assets and your liabilities. Subtract the liabilities from the assets. The results is your financial Net Worth.

Hilderbrand suggests that you visit"Plan Well, Retire Well." Click on "Goal Setting" to work through the process.

The net worth statement shows your financial situation at the time you prepare the statement. It should be revised at least once a year or as your financial situation changes.

The net worth statement is the best indicator of your financial position and is a good way to help you progress toward your own financial goals.