Tally Your Assets - and Debts
One of the best ways to know if you're on track financially is to regularly stop and check your net worth.
That's actually pretty easy—it's just the sum of all your assets minus liabilities.
Assets include cash, the current value of your investments, savings bonds, your home and any other major items such as jewelry, cars, boats and other real estate.
Liabilities include outstanding mortgages plus balances on credit cards, car loans, student loans and anything else you're still in the process of paying off.
Find out if you're on track
The Principal has an interactive tool that can help you determine if you're on track to reach your retirement savings goals.
If you're not on track, take the time to go through the family budget and look for ways to free up cash for retirement savings.
A good approach is to pay yourself first. That means having a percentage of your pay automatically directed to your employer's retirement plan each payday so you can put some of your pay to work with the least effort.
Take the next step...
Ready to save more? Login and increase contributions to your employer's retirement plan.
Audiocast with Mike Finnegan, Chief Investment Officer, Principal Management Corporation. Listen: Keep your investments on track.
Plan Ahead. Get Ahead. 2008 Year-End Planning Guide, #7962082010
