Read Related: Best Financial Tips for ParentsFIGURE OUT YOUR NET WORTH The next step is to figure out if you have a positive or negative net worth. If you’re going to build your empire, it’s important to know your starting point. Your net worth is computed by listing all off your assets (things that you own that have financial value, such as your home, car, money in the bank) and subtract all your liabilities (any and all money that you owe) to find your net worth.
CHECK YOUR CREDIT REPORTS It’s imperative that each of us get a print out of our credit report from each of the “Big 3” credit reporting agencies every year. The government has passed a law that makes our credit reports available once a year for free from AnnualCreditReport.com. This is the only site that will provide a copy of each of your credit reports at no cost to you, from each of the “Big 3,” once a year. You will not get your credit scores though; scores are computed from an algorithm that is unique to each company. Everything including your name, address, accounts, etc. should be correct. If you find any errors, make sure to contact the agency via the Internet or a letter. Once you contact the agency, they will investigate your claim. If they find the report contains errors, the agency will take the information off of your report or update it. Tip: Nothing in life is free. Any company offering you a free credit report and/or score is more than likely trying to sell you a monthly credit monitoring service. Read the fine print.