They have graciously allowed 20 percent of the proceeds of the book sales t o go directly to the WIP program. Often people have limited resources with which to achieve their goals, and that makes ranking those goals in order of importance necessary. In moving toward the accomplishment of one or more objectives, knowing what your current financial situation is pr ovides information that is vital to making the general and specific investment decisions that will provide you with the results that you want. A statement of net worth is a summary of what you own and what you owe. Your net worth is simply the difference between your assets and liabiliti es.
Cash includes actual cash on hand and checking accounts.
Cash equivalents include savings accounts, money market acco unts, short-term certificates of deposit, the cash value of life insurance policies, and basically anything that can be quickly converted to cash without any loss in value. In listing all of these assets, it is very helpful for couples to designate which assets are owned by the husband, which by the wife, which are held jointly, and also designate any assets owned with other persons. For the most part, assets are included at their current fair market value. Some assets are more difficult to value and will require professional input. Liabilities include any loans, mortgages, outstanding credit card balances, and other amounts owed to other people.