Assess Your Finances
How do you measure up financially?
Let's take your pulse, but first let's help Warren figure out his.
Warren's Net Worth
Warren, age 22, is not sure about his financial situation. He drives a nice car, has lots of nice clothes, and a full time job. He has some money in a savings account and some debts. He thought he was doing ok until last night at Club Fuel...
Warren heard a guy named Peyton bragging about his net worth. Peyton said net worth is the real measure of a person’s financial wealth.
Net Worth
Net Worth = Assets (what you own) - liabilities (what you owe)
Net worth is the measurement used to track financial wealth. It is not uncommon for someone Warren’s age to have a negative net worth. But Warren should keep track and try to increase his net worth. You can accomplish this by spending less than what one makes and using the remainder to obtain Assets and Liabilities. He does not want to end up broke.
Warren's Assets
This is what he owns that has significant cash value:
- Cash on hand: $100
- Checking account: $700
- Savings: $200
- 401(k) retirement plan through his job: $1000
- Value of his car if he sold it: $10,000
Liabilities
This is his outstanding debts like credit cards and loans.
It does not include his monthly bills. (Monthly bills are not part of the net worth statement unless they are past 
due
- VISA: $5,000
- Mastercard: $1,000
- Discover: $1,000
- Amount left on his car loan : $15,000
Check out your networth with this calculator »
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