Feb 23 2012

How to Calculate Your Net Worth

How to Calculate Your Net Worth

One of the most important financial planning steps you can do each year is to complete a Net Worth Statement. Your Net Worth is simply a snapshot of the difference between what you own (your assets) versus what you owe (your liabilities).

A good time to update your Net Worth is at the start of each year, once you have your annual statements.

Below is a sample statement.2016-08-23 Net Worth Sample

I downloaded this sample from Microsoft’s website for templates and made a few changes. The primary change was to identify “investible assets”. These include items such as RRSPs and non-registered accounts. In this example, investible 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.

Click here to Download an excel version of this Net Worth Calculator

Lastly, store this document in a reference file folder called “Net Worth”. Each year, you can refer back to it and see the changes. It’s also a valuable document to take to your annual review with your financial planner to update your financial status.

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