What Are You Worth?

Liabilities

Liabilities are things that you owe. When you are listing your liabilities, you'll want to list not just the sticker price, but the full amount you will pay after the finance charges. For example, your liability is not the cost of the house, but the total amount of the loan to be repaid. You can determine this by the payment amount times the additional payments left to pay off the amount. Ideally, you will have more assets than liabilities, but be sure to look at both. When you're making up your net worth statement, you're looking at a point in time. Your liabilities, and your assets, will change in time.