Broker Check

Checking Your Fiscal Fitness

Checking Your Fiscal Fitness

Even in these often hectic times, you set aside valuable time to visit your dentist and doctor to maintain your physical health, but have you set aside the time to take care of your fiscal health?

The first step toward maintaining financial “health” is to determine your net worth (value). Once you are aware of your assets (what you own) and liabilities (what you owe), you are then better equipped to devise your financial strategy in accordance with those strengths and weaknesses.

Liabilities can include such things as loans (for your car, home, college, etc.), credit card debts, and your utility bills. Assets can encompass your home, car, jewelry, antiques, stocks, and bonds.

A general guideline is to maintain enough of your assets in cash to pay at least six months of bills. After that, asset allocation and net worth depend on your personal needs and situation. Availing yourself of your financial professional’s knowledge can be a great help in setting up a more “healthy” fiscal regimen for your particular lifestyle.

A general checklist for diagnosing your financial health follows:


Cash (both checking and savings account)----


Other real estate holdings-----------------------

Life insurance cash value-----------------------

Motor vehicles-----------------------------------

Mutual funds-------------------------------------

Securities (stocks and bonds)------------------

Receivables (loans made, rebates)------------

Retirement accounts----------------------------

Pension lump-sum value-----------------------

Antiques, art, jewelry---------------------------

Other (stamp, coin, baseball card

  collection, household appliances)------------



Home mortgage---------------------------------

Home equity loan------------------------------

College (or other school) loans--------------

Automobile loans------------------------------

Installment loans-------------------------------

Credit card debts-------------------------------

Taxes payable----------------------------------

Current bills (utilities)------------------------

Other (rent, childcare)------------------------


                       Net Worth:

Total Assets                       ______________

Minus Total Liabilities    - ______________

            Net Worth      =      ______________


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