6 Steps to Reach Financial Freedom


	The Good News

	Why Needs are Different

	The Consequences


	Financial Health Test

	Getting Organized

	Determining Your Cash Flow

	Understanding Your Net Worth

	Learning Milestone


	Setting Financial Goals

	Achieving Short-Term Goals

	Determining Long-Term Goals

	Worksheet

	Learning Milestone


	It Only Takes a Few Dollars

	The Power of Compounding

	Saving for Retirement

	Learning Milestone


	Basic Asset Classes

	Stocks

	Bonds

	Cash and Cash Equivalents

	Learning Milestone


	Different Types of Risk

	Allocating Assets

	What's Right for You?

	Learning Milestone


	Creating a Financial Plan

	Five Immediate Steps to Take

	Final Learning Milestone

	Overview - Step1
	Financial Health Test
	Getting Organized
	Determining Your Cash Flow
	Understanding Your Net Worth
	Learning Milestone

Net Worth Worksheet

Now that you know which items go into calculating your net worth, use our tool below to run the numbers.

Where You Stand: How Much Are You Worth? Net Worth = Assets - Liabilities
The following worksheet will help you add up all of your outstanding liabilities and subtract them from your assets. This worksheet will help to put your net worth into perspective and offer insight into how you're doing financially. Congratulations on taking this important step to becoming financially fit!
Annual Income		Age
Your Assets		Your Liabilities
Cash & Liquid Assets		Credit Card Debt
Checking/Savings		Credit Card Balance
Certificate of Deposit		Total Credit Card Debt
Money Market Account		Loans
Total Cash & Liquid Assets		Car Loans/Leases
Stocks and Bonds		Loans against Investments or Insurance
Treasury Bills		Student Loans
Bonds		Total Loans
Mutual Funds		Home Related Debt
Stocks		First Mortgage
Stock Options		Second Mortgage
Investment Real Estate		Home Equity Line
Total Market Value of Stocks and Bonds		Total Home Related Debt
Retirement Accounts		Taxes
401K or 403B		Taxes Due
IRAs or Keogh		Taxes - Investments (if cashed in)
Pensions		Taxes - Retirement Accounts (if cashed in)
Total Retirement Accounts		Total Taxes
Personal
Value of Private Business
Value of Life Insurance
Home
Car
Other - Jewelry, Furnishings
Total Assets		Total Liabilities
Total Assets - Total Liabilities =

Taking Action Once you've determined your net worth, and you find you're spending more than you're earning, make an action plan to control expenses and increase investments. Preserving more of what you make is the key to increasing your net worth.

Page 7 of 8: Assessing Financial Health