Calculate Your Net Worth

·                             Get a clear understanding of your financial status; calculate your net worth by adding up your cash       assets, property, and personal belongings, and then subtract your debt, including home mortgage and credit cards. You’ll have an instant idea of your net worth. One general paradigm to use as a guide: a healthy net worth equals your age times 10 percent of your pretax income. What a wake-up call, eh?

·                             Manage and track your spending. You’ll soon see where you over-indulge.

·                             Start a savings account, and save as much as you can. You’ll need it, trust me.

·                             Reduce credit card spending. Duh.

·                             Ask for a raise. Duh.  

·                             Be reasonable with yourself; if you can only save a little, then save a little. Remember the old adage that “if you put a little on a little, soon you will have a lot.” 

·                             Protect yourself: maintain a marketable skill. Continue to learn – even when you must duck out of the job market periodically to have children, or attend to other family responsibilities, you want to be able to jump back in when you’re ready.

·                             Retain a financial advisor.

·                             Adhere to the basics of financial planning: spend less, save and invest more, and follow a plan.

·                             If you’re married, know what your personal financial liabilities are. If your husband or partner declares bankruptcy, you could be forced to claim bankruptcy too. What then?

·                             Make sure you have adequate insurance coverage.

·                             Help yourself. Take some responsibility for your own future. Open a retirement account, like a 401(k), or IRA, and invest as much as you can in it.

·                             Be honest and open about your feelings and expectations regarding financial arrangements.

·                             Communicate. Work out a harmonious budget that brings into balance all the contributions both of you make to your life together.