This template will help you quickly prepare a personal balance sheet (aka calculate net worth). A personal balance sheet is a simple tool in which all assets and all liabilities are listed. Net worth is calculated as total assets minus total liabilities. It’s not uncommon to have a negative net worth. However, the ideal situation is to have a positive net worth that grows with time.
Calculate Your Net Worth
System Requirements: Microsoft Excel® 2007 or later
User Agreement: Read it Here
Whether you’re beginning to put together a financial plan or wanting to calculate your net worth, the personal balance sheet is your starting place. Very similar to a balance sheet for business, the personal balance sheet is a snapshot of all of your assets (what you own and what is due to you) as well as your liabilities (what you owe).
The components within the personal balances are grouped, so the subtotals of each major class of asset or liability is apparent. Input amounts within those categories that are most meaningful – for example, if you own very little jewelry, it might not be worth the time to estimate its value. Need an item that’s not listed? Add, remove, or replace individual items to fit your circumstance.
The following is a list of how individual items might be valued; the important thing to remember is to value everything as of the same date:
- Cash/Brokerage Accounts/Retirement Accounts – The monthly statement for each account will have the asset’s value.
- Residence – Use a website such as Zillow.com to estimate the value of your home, or contact a local Realtor and ask for a CMA (comparative market analysis) for your neighborhood. This will list all of the homes currently available for sale in your area along with recent home sales.
- Vehicles – Kelly Blue Book, AutoTrader, or NADA are all good places to get the value of almost any automobile. You can also use these sites to value recreational vehicles.
- Jewelry/Furnishings/Antiques – If setting out to value these items on your own, you may find it difficult depending on how unique the item is; however, it’s always worth checking eBay. A good rule of thumb is to value only those items that are individually significant assets. Generally, you would not assign a value to each end table, earring, or minor antique owned. Items of true significance may need to be appraised (and possibly individually insured).
- Liabilities – With almost all liabilities, there should be a statement reflecting the amount(s) due; credit card statement, mortgage balance, etc.
Keep track of your financial progress with the net worth tracker at the bottom of this template. Each time you go through this process, simply make a copy of the tab (date each tab) and keep a running history. Also, if you would like to compare your net worth to other people, or track your net worth online go to NetworthIQ – very interesting!