Description

Why to calculate your net worth asap

Your net worth simply shows your personal wealth status. What would be the sum in your bank account if you subtract your debt from all of what you own?

Your net worth is the center of your journey to financial independence. It‘s the most important financial number that you can track for your financial life and for planning the growth of your wealth. Tracking your net worth will help you to see your progress in front of your eyes towards achieving financial independence.

How your Calculator works

For calculating your net worth you get 1 Sheet with 6 asset classes and in total 16 customizable asset sub-categories. Those are categorized by the level of liquidity for your assets. You also see your personal liquidity score.

Your calculator also includes asset classes you might not have considered like the value of your household goods which might surprise you. As a reference we reveal our real numbers as a family here in 1 separate Sheet for the 7 largest categories of household goods.

After you entered the value of all of your assets and the debt you have to count against, the tool does the work for you: You see your net worth for each asset and your total net worth as well as your total asset value and your total debt.

A pie chart answers the one question „Where is my wealth?“ by visualizing your asset allocation which will help you to question your decision on that.

A graph area visualizes how your net worth changes showing 3 parameters: total asset value, total debt, your net worth – over a 10 year time horizon. Just check your financial accounts once a year and enter your numbers here and let the tool do the work for you.

1 separate Sheet shows your asset balance as the current and prior total asset value you have. Same goes for your debts where you can also use 1 Sheet showing your debt balance. That is great if you want to track your debt pay-off progress compared to the change in your asset values resulting in your net worth change.

If you have a negative or a slightly positive net worth: there is no judgment in that! In contrary, now that you are aware of that you can use your knowledge to set a net worth goal for the upcoming year and create a plan to get there with a little bit of help from your calculator. Achieving your first financial goal is truly life-changing and will help you to keep on moving into the right direction, that feels good to you.