Net Worth Statement Template
I’ve attached an excel-based template (see link above "Net Worth Statement template") which has a net worth statement and an accompanying schedule. Take the time and use it to figure out in your local currency what your net worth is.
This is super important, because if you don’t know where you stand now you won’t know how to manoeuvre yourself to hit your goals and live your values. In fact, the sooner you know and start working towards your goals, you are already living your values because you are de-facto doing things and making decisions that are consistent with your values.
Remember your net worth statement is a financial picture of one moment in time. As of the time you are preparing your household net worth statement (now), what is the market value of all your assets, and your outstanding liabilities? The net of these two figures is your net worth. For some it’s positive and for some it’s negative. Don’t get too disappointed if it’s negative or lower than where you thought it would or should be. Awareness is key. Now that you know, you can plan towards a better snapshot for tomorrow and next month and next year. Tony Robbins aptly puts it in his latest book, “(Humans) often overestimate what we can do in 1 year and underestimate what we can do in 10 (years)”. This is an evolution. Don’t be hasty.
How do I increase my net worth?
Simply put, if you hike your assets and or drop your liabilities, you will improve your net worth.
This number is worth a thousand words. It’s your starting point and it’s a point you can monitor and track over the course of time.
- You will be able to make decisions faster because you will know immediately if a certain purchasing decision increases your decreases your net worth.
- You will be more focused on eliminating your debt and accumulating assets.
- You will discuss as a family which routes to take to propel your forward. All really excellent standards of behaviour.
So please take some time and put pen to paper. Figure out this number. Then we have one more exercise; figuring out our monthly income and expenses. With these 2 things, we can work towards a comprehensive financial plan!