Money isn‘t a great topic to talk about. If you have a lot, you don‘t want others to take it away and if you have little, you don‘t want others to know about your struggles. Sometimes we can‘t see the light in all the darkness, but there could be money hiding in places you didn‘t even think about. A very thorough budget can help you find this money and tells you exactly how much your net worth is.


Net Worth

To calculate your net worth you have to subtract your liabilities from your assets.

Assets include: Cash, Checking and Savings Accounts, Cash value of Life insurance, Savings Bonds, Mutual Funds/Money Market, Stocks/Bonds, College Funds, 401k/403b/457, IRAs, Market Value of your Home, Market Value of a Second Property, Time Share, Vacation Home, Vehicles, Furniture, Electronics, Jewellery, Collectibles, and more…

Add all your assets up.

Liabilities include: Signature Loans, Auto Loans, Consolidation Loans, Student Loans, Store Credit Cards, Credit Cards, Loans from Friends or Family, Advance Debt/Overpayments, Home Mortgage (Balance Due), Other Mortgages, and more…

Add all your liabilities to get a total.

Now calculate your net worth: Total assets minus total liabilities!


What does this tell us?

This tells us how much money you currently have either in the form of actual money or as the value of an item or fund etc. You could use some of your assets to reduce your liabilities. If you have a negative net worth, try to cut your liabilities.


Where does all the money go?

Besides taxes, investments and savings, most of our money goes towards living expenses. Here is a detailed list of what kind of living expenses you might have and tips on how to cut the costs:

  • Mortgage/Rent – Make extra payments towards your mortgage to pay it off faster/Get a smaller rental home or find something with a lower rent
  • Big Box Store Purchases – Buy older models, look for sales or get it from a yard sale etc.
  • Maintenance – Try fixing it yourself (how-tos can be found online)
  • Take Out – Eat more homemade meals
  • Groceries – Make a plan and stick to your grocery list
  • Lunch – Take lunch from home
  • TV – Use Netflix, Hulu, Amazon Prime or watch current episodes on Apps like FoxNow, TheCW, NBC
  • Internet – Shop for a low price/Change provider to get a deal
  • Phone – Reduce your data/Shop for better deals
  • Utilities – Check out this list how to save
Child Care:
  • Allowance – Reduce the allowance or cut completely and only give out money if you feel it‘s necessary
  • Daycare – Ask friends and family for help
  • Gas – Get gas when the prices are low (even if you still have half a tank)
  • Maintenance – Do it yourself as far as possible or get friends to help out
  • Clothes – Buy used clothes or shop at stores like Burlington‘s
  • Laundry – Wash full loads/Only dry clean if absolutely necessary
  • Health, Life, Home, Auto, Dental, Vision – Shop around to get an affordable plan
  • Dental, Eye care, Hospital etc, Prescriptions – Live healthy to improve your health and reduce healthcare needs as far as possible
  • Fitness Center – Work out at home/with friends…
  • Books – Get used ones
  • Tuition/Fees – Look for scholarships

Shop for gifts whenever you have a little money left over, even if it is still months away from the actual event

Pet Care:
  • Food/Supplies – Buy big bags of food to make them last longer
  • Vet – Small offices might be better than big chains

Put a little bit aside for out-of-the-ordinary expenses


Let me know if you have any questions!


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Other articles you might find interesting:

Get Rid Of Your Debt

Monthly Payments

Meal Planning


Check out Take Control Of Your Finances Part 1 – 5 below!

This article is for informational purposes only. Read the full disclaimer here.