Last time I touched on how to figure out what affordable housing in your middle and old age will look like for you. The first step is determining what you have and what you spend.

So how much money do you have? If you don’t know, you should. Go through all your paperwork and make a list of your bank accounts and balances, PayPal accounts and balances, rental income (if you’re a landlord), current value of stocks and bonds you own, money in your IRA or other retirement accounts, cash in your wallet and cash stashed in your sock drawer.

That’s a start. Now let’s look at your net worth. If you own your house, add its value to the total from the previous paragraph. If you own your car(s), include their approximate values (Kelley Blue Book online is a good source for that). The same goes for campers, boats, motorcycles and ATVs.

Total those items, then subtract from them what you owe on them, if anything. Use your current mortgage balance, current car loan balance, etc.

So, are you still in the black, or does your calculator show a negative number?

If it’s negative, you need to become debt-free before you think about retiring. But if it’s positive, pat yourself on the back.

Now that you have a rough idea of what you’re worth, next time we’ll take a look at what you spend.