Net Worth Statement | Money Club

Net Worth Worksheet

Complete a net worth worksheet. This will provide you with a picture - at a point in time - of your financial position. It will provide you with a starting point as you begin your journey.

Assets - Liabilities = Net Worth

We have provided an example you can use as a guide. Edit as needed to fit your situation.

To download our Excel workbook click here

Your objective is to answer the following question:

What is your net worth today?

There is no good or bad answer. Rather, you are simply getting the starting point of your financial journey established.

At the end of each year, make a copy your old worksheet. Keep old copies - so you can track the annual changes. And begin each new year with a fresh worksheet.

Don't obsess about finding and inputting exact information, especially when working on your first draft. Speed is important so estimates are ok. The important thing is to ensure you are including all the important inputs.

Grow Your Net Worth - Multiple Streams of Income

The key to building wealth is to aggressively grow your assets and shrink your liabilities. One way to grow your assets is to save part of your take-home pay and invest it in financial assets. This will generate new and growing income streams. Over time (in addition to your savings) these streams will become rivers.

Housekeeping Item

What about clothes, furniture, kitchen items and other personal possessions? Used, they likely now have little value. So ignore them as an input to determining your net worth.

Assets and Liabilities

Not all assets are good and not all liabilities are bad. As a general rule, you want to own assets that put money in your pocket (produce income) - like financial assets. You want to avoid owning assets that take money out of your pocket (like vehicles).

Asset: What you own

Good assets
- Bank accounts
- Investments
- Real estate
Bad asset
- Vehicle

Liability: What you owe

Good liability
- Student loan
Bad liability
- Credit card debt
- Car loan