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Net Worth
The Difference Between Your
Assets and Your Liabilities
The net worth is computed by subtracting what you owe from what you own. It is very useful to realize what is your financial situation in this point in time. Knowing your current position is extremely important to take control of your finances and set your financial goals more efficiently. Furthermore, computing your net worth periodically can be a great tool to keep track of your financial progress and adjust financial goals if needed.
The downloadable worksheet below will guide you through your calculation and will then help you to interpret the results. On the left-hand side of the table, you can fill the space with your assets, while on the right-hand side, you can insert your liabilities. Under each category, there are a few suggestions to help you identify and differentiate your assets and liabilities. If these suggestions do not correspond to any of your assets or liabilities, you can simply indicate a value of zero on the side. On the other hand, do not hesitate to add labels of other liabilities or assets that we did not suggest, but may be relevant to you.
Make sure you repeat this calculation multiple times, at least once a year, and compare the results from time to time. This will help you be aware of your progress, and make the right changes in your financial plan if needed. Knowing your net worth is the first and fundamental starting point to then be able to set your financial goals. Let’s do it!
