One of the simplest financial planning steps you can do is to complete a Net Worth Statement each year. Your Net Worth is simply a snapshot of the difference between what you own (your assets) versus what you owe (your liabilities).
Click here for a sample Person Net Worth Statement as an excel spreadsheet.
I downloaded this sample from Microsoft’s website for templates and made a few changes. The primary change was to identify “investable assets”. These include items such as RRSPs and non-registered accounts. In this example, investable assets total to $235,000. This is one of your important numbers as it represents a source of funding for future goals such as your retirement.
I recommend updating your net worth once a year. A good time is to do it in late January because, that’s when you’ll be receiving annual investment statements based upon year-end values. You can also estimate the value of your real estate and other items or look them up. Once complete, simply print out the statement and attach the back-up information for reference.
Lastly, store this document in a reference file folder called “Net Worth”. Then next year, you can refer back to it and see the changes. It’s also a valuable document to take when meeting with your financial advisor to update your financial status.
click here for a blank net worth calculator using excel
Feel free to email me any suggestions for improvements.
Don Maycock, P. Eng, CFP is an independent “fee-based” financial advisor, licensed for mutual funds and insurance. If you have a question or comment, email Don at dmaycock@a-q.com, call (613) 966 8289, or go to www.donmaycock.com for more information.
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