How Much Are You Worth?
	As you begin the process of budgeting your income, take the time to figure out how much you are really worth. You can do it the same way any business does - by drawing up a balance sheet. A balance sheet lists your assets (how much you own) and your liabilities (how much you owe). Your assets less your liabilities tells you your net worth on that particular date. If you calculate your net worth several times during a year, you will be able to see how much progress you are making toward financial security. Print out the worksheet and use it to figure your net worth. ASSETS Assets are physical property (such as your home or car) or intangible rights (such as money someone owes you) that have value. Assets are useful to you because you can either spend them, sell them, or use them as security on a loan. There are two kinds of assets: current and fixed. Current assets can easily be turned into cash. Fixed assets are more difficult to turn into cash. LIABILITIES Liabilities are debts, or amounts of money owed by you to someone else. Expressed conversely, liabilities are the claim of your creditors. Liabilities are expressed as either short-term or long-term or as secured or unsecured. Short-term liabilities are generally paid off within one year. Long-term liabilities usually take longer to pay off. Secured liabilities, such as mortgages or auto loans, require you to pledge a specific asset to ensure payment of the debt. Unsecured liabilities are based on your personal credit worthiness. <Back