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This is a complete guide to creating a personal net worth statement. In this guide, you’ll learn: What net worth means; Why you should prepare a net worth statement; How to prepare a net worth statement; How to calculate your net worth; So if you’re ready, let’s dive right in! Bonus: Get a free net worth statement template below.
A net worth statement takes an inventory of your assets versus your liabilities to determine the approximate value of your current net worth. A net worth statement can reflect either a positive or a negative net worth balance.
Download a free Net Worth Statement to determine your net worth, which is the difference between your assets and liabilities.
A personal net worth statement or personal financial statement is simply your personal balance sheet. If you were a business, what would you be worth? Add up the value of all your assets (what you own), and subtract the value of your liabilities (what you owe), and that is your net worth.
Your personal net worth statement provides you a glimpse of your financial situation in a specified period. If you want to know your financial health , this is one of the statement, along with your personal cash flow statement that tells everyone that.
In this article, I’ll walk through a hypothetical net worth statement and discuss how to interpret what it’s telling you. Sample Net Worth Statement
A net worth statement is one of the most powerful tools you can use to keep track of where you’ve been, where you’re at, and where you’re going. Knowing exactly what your financial picture looks like helps you know if you are on track or areas of opportunity. Fill out the form to download our free Net Worth Template today!
Net Worth = Assets – Liabilities. To start, take an inventory of all your assets including: Cash and Investment Accounts. Bank accounts (checking and savings) Retirement accounts ( 401k, 403b, IRA, Roth IRA, etc.) Taxable investment accounts ( stocks, bonds, mutual fund shares, ETFs, etc.) Employer stock options. Education savings accounts.
This statement will give you a picture of your current financial position on a given date and help you determine your net worth — what you “own” (assets) versus what you “owe” (liabilities).
What a statement of net worth looks like, why it’s important to have one, and how to create and maintain your own net worth statement.