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The second part of the equation requires equal diligence: listing all of your liabilities. Liabilities are any debts or financial obligations you owe. This category includes obvious items such as mortgages, car loans, student loans, and credit card balances. It also encompasses less obvious obligations like personal loans, medical bills, michael jordon net worth or any back taxes you might owe. The key here is to focus on the outstanding balance, not the monthly payment. For example, if you owe $10,000 on a credit card, that full $10,000 is a liability. Add up the balances of every debt you owe to get your total liabilities.
