Even if you don’t fly in first class or summer in the Hamptons, this simple equation is an important tool that says a lot about your financial health. Still, most people don’t bother to calculate it. That’s a mistake.

“It’s the first snapshot into an overall look at your finances,” said Michael LaRiviere, a certified financial planner at Essex Financial in Connecticut.

Subtract what you owe from what you own to determine your net worth.

That will give you a good picture of your financial health.

If your net worth is in the red, don’t panic.

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