Friday Financial Tidbit: Calculating your Net Worth

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Do you know your net worth?  If you do not know or have not calculated yours in a while you might want to consider taking some time and calculating it.  Your net worth is calculated simply as what you own (assets) minus what you owe (liabilities). 

The reason why I encourage you to track your net worth is because it can be useful as a way to track your goals.  After a few months of doing smart things with your money it is very motivating to see your net worth increase each month as a result!  It can also be a good motivator for you to get your finances in order, as you might be shocked to realize how small your number is or that you actually have a negative net worth!

JW’s Financial Coaching has developed a simple net worth spreadsheet for you to track your net worth if you never have.  It is a simple form to cover the basics.  Feel free to modify it as you please.  On the second tab of the spreadsheet there is a graph that will automatically populate once data is entered and you can see how the graph changes from month to month.

Calculating your net worth gives you a perspective of where you stand overall financially.  If you are not calculating it monthly, quarterly, or at least annually, start this month as it can be quite an eye opener and could lead to some much needed conversation in your home about the current state of your finances.  CNN Money has a nice net worth calculator that shows you where your net worth ranks amongst your age and income.  But remember, that you do not want to be average, but instead become remarkable in dealing with your finances!

JW’s Financial Coaching is a for-profit Financial Coaching business.  To learn more about us please visit one of the following links:

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About Jon White

Giving people hope and seeing them win with their finances is something I have a strong passion for. Because of this passion I started JW’s Financial Coaching in the summer of 2010. Financial coaching has allowed me to combine my passions of finances, teaching, and helping others by helping people get on the right track financially. I'm interested in hearing your story so please do not hesitate to interact with me through social media.
This entry was posted in Financial Goals, Friday Financial Tidbit, Net Worth, Spreadsheets and tagged , , , , . Bookmark the permalink.

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