Using a Net Worth Statement (1282)

A net worth statement compares what you own with what you owe. As part of a regular annual financial “checkup,” a net worth statement can:

- check progress toward financial goals

- provide a record of assets for insurance purposes

- help you plan for changes in assets, debts, income, expenses, and other financial areas

- calculate home equity (house value minus home loans)

- determine if you have an adequate emergency fund

- provide information to lenders when applying for a mortgage or other large loan

Many financial publications have simple forms to calculate net worth. Once you’ve done your first net worth calculation, resolve to do one each year to track changes in your financial situation.

For more information on this subject, Please visit the College of Agricultural Sciences Publications Web site.

Feel free to forward, post or reprint any of the "Solutions" in their entirely, but please credit http://www.solutions.psu.edu/ as the original source of information, and please do not change the content.