Step 3: How Costs Affects You

Reducing spending can be worth more than you think. We just went through a Budget Analysis. Remember the benefits of a budget? It reveals wasteful and inneficient spending. Go back to your budget and determine where the cuts can be made, then use this calculator to see how much your budget reductions may be worth after the savings are properly invested.

Another way to spend less is to take a bagged lunch. You don't realize how much you spend each week eating lunch out or ordering take-out until you sit down and add it up. Again, this would be part of Budget Analysis.

One of the best ways to increase your savings is to spend less. Even a simple change such as bringing a bagged lunch to work a few times a week can make a difference. This calculator illustrates how a little lunch savings can go a long way.

This calculator illustrates how a little lunch savings can go a long way.

Net Worth is the value of your Assets, minus all of your Liabilities. In other words, it is what you own minus what you owe.

The Net Worth statement is the best indicator of your financial position at a particular point of time.

A negative Net Worth statement may occur when someone is just starting out, or has a tremendous debt load. Of course we are hoping for a positive Net Worth statement that is increasing each and every year.

Net Worth assists the Bank in qualifying the consumer for a Mortgage and it also helps in getting proper Insurance coverage.

The information below will give you some idea where you should be regarding your Net Worth.