Net Worth Statement
Posted in category BUDGETSFINANCIAL STATEMENTS
How important is it to maintain a statement of personal financial data?
Do you know what is your current financial worth? No, then it is time you prepare your Net Worth Statement. Spreadsheet123 brings a simple yet effective template for calculating Net worth statement.
To lead a prosperous life we need to have control over our finances. We have lot of assets but even more liabilities to cater to. Once we prepare a net worth statement; we get a clear picture of our financial status. The statement is really required if we are planning to apply for a loan or even if planning to do some investments. The financial institutes might ask for the net worth statement before considering your application.
Once you have your financial data recorded for two broad heads that is Assets and Liabilities, you can quickly calculate the net worth of an individual.
Net Worth Statementfor Excel® 2003+ & Google Docs
Download via our Add-on!
How to Prepare your Net Worth Statement
Personal financial statement provides a realistic listing of the assets we own and the debts we owe. Net worth statement should only be used to record the details of personal assets and liabilities. The business assets or liabilities details should not be added into the net worth statement. The amount entered for calculating the assets valuation should include the exact value that you would earn on selling the asset in the market.
You can records the Name of the individual whose statement we are preparing and the Date when prepared it. Country specific settings allow us to select a currency type from the drop down menu. The sheet has two broad categories of financial information:
- Assets: what you own
- Liabilities: what you owe
Assets and liabilities are further segregated under various heads. The assets could include the cash, investments, etc. whereas the liabilities could include loans, debts, etc. The two broad divisions of financial information are further sub-divided into various categories as follows:
- Cash & Bank Accounts: details of cash in hand, cheque accounts, savings account, money market funds, cash value of life insurance, etc.
- Investments (Market value): details of certificates of deposit, stocks, bonds, mutual funds, annuities, pension plans, etc.
- Personal Property (Present value): details of automobiles, home furnishing, appliance, furniture, collections, jewellery, etc
- Current Debts: stores record of debts like household, medical, credit card, bank taxes, legal, etc.
- Mortgage: details of any kind of mortgage debts like home, land, etc.
- Loans: value of debts like bank loans, automobile loan, education loan, life insurance loan, personal loan, etc.
Total for each sub-categories is calculated separately in the statement, this helps to analyze the category which needs some financial revamping. The Net Total Assets amount is displayed below the assets table and the Net Liabilities amount is displayed under the Liabilities Table.
Template automatically calculates the Net worth statement by calculating the difference between the Total Assets and the Total Liabilities. Whenever any financial institute asks for your net worth statement simply print the page and sign it under before dispatching the statement to the concerned department. By signing we pledge that the data of the sheet is updated and correct.
We recommend you not to change or delete the pre-defined formulas of the template. By doing so the entire template would get altered as the various fields have interconnected formulas and the results in such a scenario would be doubtful.
Function used in template
- SUM(number1, [number2], [number3], [number4], ...)
This template will help you quickly prepare a personal balance sheet (aka calculate net worth). A personal balance sheet is a simple tool in which all assets and all liabilities are listed. Net worth is calculated as total assets minus total liabilities. It’s not uncommon to have a negative net worth. However, the ideal situation is to have a positive net worth that grows with time.
After completing your net worth for the first time, it will only take a few minutes to update. Update annually to keep track of your progress.
Calculate Your Net Worth
System Requirements & Download
System Requirements: Microsoft Excel® 2007 or later
User Agreement: Read it Here
Whether you’re beginning to put together a financial plan or wanting to calculate your net worth, the personal balance sheet is your starting place. Very similar to a balance sheet for business, the personal balance sheet is a snapshot of all of your assets (what you own and what is due to you) as well as your liabilities (what you owe).
The components within the personal balances are grouped, so the subtotals of each major class of asset or liability is apparent. Input amounts within those categories that are most meaningful – for example, if you own very little jewelry, it might not be worth the time to estimate its value. Need an item that’s not listed? Add, remove, or replace individual items to fit your circumstance.
The following is a list of how individual items might be valued; the important thing to remember is to value everything as of the same date:
- Cash/Brokerage Accounts/Retirement Accounts – The monthly statement for each account will have the asset’s value.
- Residence – Use a website such as Zillow.com to estimate the value of your home, or contact a local Realtor and ask for a CMA (comparative market analysis) for your neighborhood. This will list all of the homes currently available for sale in your area along with recent home sales.
- Vehicles – Kelly Blue Book, AutoTrader, or NADA are all good places to get the value of almost any automobile. You can also use these sites to value recreational vehicles.
- Jewelry/Furnishings/Antiques – If setting out to value these items on your own, you may find it difficult depending on how unique the item is; however, it’s always worth checking eBay. A good rule of thumb is to value only those items that are individually significant assets. Generally, you would not assign a value to each end table, earring, or minor antique owned. Items of true significance may need to be appraised (and possibly individually insured).
- Liabilities – With almost all liabilities, there should be a statement reflecting the amount(s) due; credit card statement, mortgage balance, etc.
Keep track of your financial progress with the net worth tracker at the bottom of this template. Each time you go through this process, simply make a copy of the tab (date each tab) and keep a running history. Also, if you would like to compare your net worth to other people, or track your net worth online go to NetworthIQ – very interesting!
On October 19, 2015 / Analysis, Calculator, Calculator, Downloads, Financial Statements, How To, Life, Personal Finance, Portfolio, Savings