Net Worth

You cannot develop a plan unless you know where you are, in other words your net worth. You need a financial snapshot that shows what you own and what you owe. To calculate your net worth, you can use our template, or a blank sheet of paper.

Assets

Start by making a list of everything you and your spouse own. Common items will include:

	cash in the bank
	Canada Savings Bonds
	RRSPs
	investments (stocks, bonds, mutual funds)
	cash value of life insurance policies
	house, cottage, and other property
	vehicles (car, truck, snowmobile, etc.)
	furniture, antiques, and other collectibles

By totaling all of these items, you will have a list of everything you own.

Liabilities

Now add up everyone you owe money to (i.e. your creditors). This will include:

	credit cards
	mortgages
	lines of credit and other personal loans
	car loans
	student loans
	taxes owing to Revenue Canada
	other debts

To ensure that your list of liabilities is complete, go through your cheque book or bank statement for the past two months, and make a list of everyone you paid; all of these creditors that you still owe money to should be on your list of liabilities.

Net Worth

The difference between your assets and liabilities is your net worth.

If your liabilities are larger than your assets, and you are having trouble making your payments each month, take our quiz to see if you are heading for trouble. If you are, you should seek help from a professional.

If your net worth is positive, but you are having trouble paying your bills, there are strategies that can improve your situation and help you avoid bankruptcy.

If your debts are under control, go on to step three in the MoneyProblems.ca plan: Personal Budgeting.