Some people live “paycheck to paycheck.” In other words, they use every penny they earn and have to worry about having enough money to make it to the next paycheck. This can be very stressful, especially when unexpected expenses, like car repairs or doctor's office visits, occur. Many of these people also spend more than they make by using credit to pay for those unexpected expenses. This only makes the stress worse. Stress can affect health and cause more unexpected expenses and additional hardships.

By making sure that you know your net worth at any given point, you can avoid this cycle. First, you have to figure out where you are now, and then you have to determine where you want to be and make a plan to get there.

Net Worth

What is your net worth? How do banks and other creditors decide if they can offer you a loan? View this presentation to learn how to caculate your own personal net worth, as well as all of the individual factors that help determine that figure.

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