Answering this question should be very easy. All you have to do is calculate your net worth. You can do that by making a difference between all that you own and all that you owe. That actual difference is what people refer to as net worth. Determining your net worth will provide you a good view of your financial status.
First, make a list of all your assets. You should think about all the stuff you own, because everything will add up. Bank accounts, checks, cash or savings and personal properties such as your home, your car or any other belonging, everything has a value nowadays. Even life insurance is taken into account. Figuring out how much all of your assets worth is only the first step. Now you will have a more frightening task, finding out what you owe. If the total of what you owe is higher than the total amount of the things you own, you are in serious trouble.
Now make a list of all your liabilities. This list should include stuff like home mortgage and any kind of loans, like auto loans or loans against your health insurance. Don ‘t forget to mention any salary advance you might have received, because you won ‘t get those money anymore.
Calculating the difference between your assets and your liabilities will give you your net worth. You might want it to be as higher as possible, but sometimes your net worth might not be what you expected. Still, you should not feel hopeless. Maybe you just went through a rough period and things will kick up from now. Try to put both your winnings and your expenses in order. If you have any kind of loan, come up with the best plans to pay interest rates. Make sure you only get what you really need for your life to be good. Extravagant expenses are not an option anymore.
Calculating their net worth might be discouraging for some, but with a cautious attitude and some right planning one can easily get through the tough time.