Remember, you’re managing your money for a reason. You want to increase your net worth over time.
Thus, you must keep track of your net worth. This is very easy to do: You just need to develop a
simple net worth statement and update it regularly. You then can develop goals and assess your
As an aside, many experts say you only need to look at this annually. Personally, I look at it monthly.
Doing so allows me to always know my overall financial position and to react before any emergency.
Net worth is what dollar value you are worth. To come up with this number, you add up all that you
own and subtract everything you owe.
So, how do you develop a net worth statement? Follow these steps:
1. Develop a form similar to the example provided on the next page.
2. List all your assets (what you own) and total up their value: This includes cash,
investments, real estate, vehicles, and anything else that has value (to make it easier for
yourself, make a conservative estimate of your personal property, or don’t bother
including it if the value is minimal).
3. List all your liabilities (what you owe) and total up their value: This includes your
mortgage, loans, credit card debt, and any other debt you may have.
4. Subtract your liabilities from your assets. The total is your net worth.
Sample net worth statement: Shane Furlong
December 31, 2017
Cash on Hand $1,000
Checking Account $5,000
Savings Account $15,000
Other Property $0
Other Vehicles $0
Personal Property (Conservative Estimate) $3,000
TOTAL ASSETS $303,000
Home Mortgage $110,000
Home Equity Loan $0
Other (i.e. Personal) $0
Credit Card Debt $5,000
TOTAL LIABILITIES $145,000
NET WORTH (Assets – Liabilities) $158,000