Now let’s look at your current financial
resources. This is important because,
as you will learn later in this booklet,
your financial resources affect not only
your ability to reach your goals, but
also your ability to protect those goals
from potential financial crises. These
are also the resources you will draw
on to meet various life events. Worksheet 2– Financial
student loans, income taxes due, taxes due on the
Documents Checklist in the back of this booklet can
profits of your investments, if you cashed them in, and
help you get organized.
any other outstanding bills.
Calculate your net worth. This isn’t as difficult as
Subtract your liabilities from your assets.
it might sound. Your net worth is simply the total
Do you have more assets than liabilities? Or the other
value of what you own (assets) minus what you owe
way around?
(liabilities). It’s a snapshot of your financial health. Use
Your aim is to create a positive net worth, and
Worksheet 3–Balance Sheet to Calculate Net Worth in
you want it to grow each year. Your net worth is part
the back of this booklet to write down your information of what you will draw on to pay for financial goals and and do the calculation.
your retirement. A strong net worth also will help you
First, add up the approximate value of all
through financial crises.
your assets. This includes your home (if you own one)
Review your net worth annually. Recalculate your
and your checking and savings accounts. Include
net worth once a year. It’s a way to monitor your
the current value of investments, such as stocks, real
financial health.
estate, certificates of deposit, retirement accounts,
Identify other financial resources. You may have
IRAs, and any other retirement benefits you have.
other financial resources that aren’t included in your
Now add up your liabilities: the remaining
net worth but that can help you through tough times.
mortgage on your home, credit card debt, auto loans,
These include the death benefits of your life insurance
policies, Social Security survivor’s benefits, health care
U.S. Department of Labor Employee Benefits Security Administration 5
SAVINGS FITNESS A GUIDE TO YOUR MONEY AND YOUR FINANCIAL FUTURE
coverage, disability insurance, liability insurance, and