Tuesday, January 5, 2021

How to Prepare Net Worth Statement?


Good day mate!


The net worth statement is the first step for financial planning 💸. Before you start setting your financial goals, you need to prepare your net worth statement in order to see what is your current financial situation. 


What to be included? 💰


There are two groups of information you can include within your net worth statements. The groups are assets and liabilities.


Lists of Assets 💲

You may include any of these lists of the asset if you own it:

  • Bank and money market account
  • Certificate deposits (CDs)
  • Cash on hand
  • Stocks, bonds, mutual funds
  • Saving bonds
  • Other investments
  • 401(k) / pension funds
  • IRAs (Individual Retirement Accounts)
  • Small-business retirement plans
  • House
  • Land
  • Rental property 
  • Vehicles
  • Furnishings
  • Jewellery and aesthetic things
  • Electronic equipment
  • Rents from the rental house
  • Rental deposits (paid)
  • Utility deposits (paid)
  • Whole life insurance
  • Business owned privately

Lists of Liabilities 💲
  • Mortgage
  • Home equity loans and home equity lines of credit
  • Vehicle loans
  • Student loans
  • Credit card balances
  • Store credit card balances
  • Gas credit cards
  • Real estate taxes
  • Unpaid income taxes
  • Quarterly estimated taxes
  • Unpaid bills due
  • Alimony
  • Child support
  • Any other money that you owe

You may see how to make this net worth statement in excel in my previous post (click here). It is under the information gathering. Happy managing! 🤑

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