Do You Know What Your Net Worth Is? Organize Your Personal Finances

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One of the most overlooked personal finance tips is for consumers to know what their worth is, that is, their “net worth”.   There is a fairly easy way help you discover what your per minute worth is.  This will enable you to see how much money you might be losing because your personal finance and budgets are disorganized.

Here’s a pretty simple method to calculating your worth, all the way down to the minute.

Your Per Minute Worth Calculation

Yearly income divided by 52 weeks = weekly income
Weekly Income divided by 40 hours (or total hours you work per week) = hourly income
Hourly income divided by 60 = Your Per Minute Worth

Before you begin to overhaul and balance your financial budget, you need to find out your net worth, and your spending habits. This will help assist you later with your budgeting, payoffs, or long-term personal savings. It will also
help in guiding you with such things as your insurance, investments, income tax, retirement, and estate planning.

Your total net worth is your total assets (what you own or already have saved) minus your total liabilities and personal expenses (what you owe out).  It may not be as easy to figure out your per minute net worth and it will take a little more time and persistence to determine this.
Total assets – total personal expenses = Total Net Worth

It’s easiest to do this exercise  when you are paying your bills.  During “bill paying time”, you usually have the information handy to help you calculate your net worth.  So, if it usually takes you an hour to pay your
bills, tack on at least an extra hour this month for this exercise.  You can use the list below as a guide and fill in the blanks with your personal information.  You will be writing in your totals for each line. For instance, if you have two savings accounts, total your balances first and then write in the total next to Savings Account.

Cash Reserve Totals

Certificates of Deposit:
Checking Account:
Credit Union Account:
Money Market Account:
Savings Account:

Investment Totals

Mutual Funds:

Personal Totals


Real Estate Totals

Second Home/Vacation Home:
Other Real Estate:



Short-term Debt Totals

Credit Card Balances:
Current Bills Owed:
Loans w erms of six years or less:

Long-term Debt Totals

Loans w erms of seven years or more:


Congratulations! You did it!
Remember,  Total assets – total personal expenses = Total Net Worth

Now see if your net worth falls under A., B., or C. below, and see how you
can begin to bring some balance back to this area of your life.

A. If your total net worth is half or less of your annual income or you have
a negative number you need to REALLY * OverHaul * and Balance your financial state!

~~ Pay off some/all debt
~~ Cut back on spending
~~ Stop charging
~~ Start a savings plan

B. If your total net worth is more than half your annual income but less
than a few years’ income you need to * OverHaul * and Balance your financial

~~ If you’re 40 or under and own a home, you’re okay for now
~~ If you’re 40 or over and you don’t own a home:
“ Cut back on personal spending
“ Stop charging
“ Reduce debt
“ Increase your personal savings
“ Buy a home before retiring

C. If your total net worth is more than a few years’ of your annual income,
CONGRATULATIONS! Keep doing what you’ve been doing!

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