Tracking your assets and liabilities is an important component of knowing your complete financial picture. Your example, any car you own has a value and that value should be included in your overall net worth. Likewise, if you own real estate or a business, these are also assets that should be included in your overall net worth. Liabilities are anything you owe money on. A car loan, home mortgage, or even child support obligations are all liabilities that should also be included in your overall net worth.
When you enter your assets and liabilities in the Online Branch, these values will be used in the budgeting tools to track your overall net worth.
Asset Examples:
-Motor vehicles – the current Blue Book value of any cars, motorcycles, boats, RVs, etc. you own.
-Real estate – the value of your home, land, a condo, or other property you own even if you have a mortgage.
-Retirement accounts – the value of your 401Ks, IRAs, and other retirement accounts
-Business ownership– the value of any business you own.
-Stocks, bonds, mutual funds – the value of stocks, bonds, or mutual funds you own.
-Personal valuables – the appraised value of jewelry, collectibles, furniture, etc. you own.
-Life insurance – any cash value you have in your policy
Liability Examples:
-Automobile loans – the amount you still owe on your car or other motor vehicles.
-Mortgages – the amount you still owe on your mortgage(s)
-Child support – the amount you may owe in child support
-Home equity loan – The amount you owe if you have a home equity loan
-Credit card debt – any balance you owe on credit cards you may have
-Student loans – any amount you owe on a student loan
