Net Worth Statements
Are you winning or losing with money?
No matter your income or age, everyone could benefit from doing net worth statements.
Net worth statements can help you make informed decisions about your money and financial strategy.
If you don’t know where you are in the game, how will you know if you are winning or losing?
Net worth statements give you a snapshot of where you are financially and can help motivate you on your journey.
Your net worth = what you OWN minus what you OWE
It’s the total value of everything you own (including your house, cars, investments, and cash) — minus — all your liabilities (all of your debts).
This will show you where you are.
What needs to be fixed.
How much further you need to go.
Here are a few suggestions to consider when doing your net worth statements.
Do NOT include social security or pensions in your net worth.
These are only promises of future income and can change at any time. Social Security income and pensions are not considered assets. However, Social Security income and pensions should be included as a footnote on your net worth statements.
Do NOT include kids’ college savings or any other savings for your children in your net worth.
This money is not being set aside for you, so it should not be considered part of your net worth. However, any money you are saving for your children should be included as a footnote on your net worth statements.
DO write what you are thankful for on each net worth statement you do.
This can be a fun and great way to look back at older statements to see how far you’ve come, keep you motivated, and remind you of all the things you are grateful for.
DO keep a copy of all accounts and how to access the accounts with your net worth statement in a safe place.
This can be very helpful for loved ones if something should happen to you. If needed, they will be able to easily see what you own and what you owe, and be able to take care of accounts accordingly.
How often you do a net worth statement is up to you.
Some do a net worth statement once a year.
Some do them twice a year or every few months.
Others do net worth statements every month.
Check out Net Worth Statements for more information.
Comment below if you have any other tips or suggestions about net worth statements.
We are all learning together!
