Net Worth Template And Spreadsheet
Do you know your personal net worth? Use this simple net worth template or spreadsheet to calculate your net worth.
If you plan to borrow money for your small business and/or seek investors, you will need an up-to-date net worth statement. You might even need to provide a net worth statement when you sign a commercial lease (for office or retail space).
This net worth template helps you take inventory of your assets, dividing them into liquid assets (such as savings accounts and stocks), and illiquid assets (such as real estate or a 401k). By the way, liquid just means that you can get your hands on the cash right away, whereas illiquid means that it might take some time to sell the asset and/or there could be restrictions or penalties for selling it.
The net worth template also helps you list all of your liabilities (debt), including home mortgage, auto loan, and student loans.
Add up all of your assets, subtract all of your liabilities, and voila, you’ll have your personal net worth.
Even if you don’t intend to borrow money, get investors, or sign a lease, adding up your net worth several times a year is a good practice to get into. It can help you track your finances and make informed decisions. For example, if you plan to start a new business that will cost $10,000, and your net worth is $100,000, maybe that’s a good risk to take. But if you plan to start a new business that will cost $10,000, and your net worth is $20,000, maybe that’s too much leveraging.
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How To Calculate Your Net Worth – coming soon
Jennifer Croft Comments
I love, love, love to calculate my net worth. Since my teenage years, I’ve been calculating my net worth, even though, at the time, I didn’t know that’s what it was called. Back then, I added up the money I had set aside from my waitressing wages and watched my savings account grow. Today, I add up my net worth several times a year. Why do I like doing it so much? Because it’s a powerful and empowering exercise. If you have a negative net worth, you can track progress as you whittle down your debt and build your assets. If you have a positive net worth, you can watch it grow every year, or at least guard to see that it doesn’t shrink.