Net Worth Statement

When planning or reviewing your finances, there is nothing more powerful than starting by putting together a net worth statement.  That’s because a net worth statement provides a picture of your total assets, as well as your liabilities.  The difference between these two is your net worth.  After initially compiling your net worth statement, updating it on a quarterly basis will allow you track the progress of your net worth over time, letting you learn whether your financial situation is improving or getting deteriorating, and to what extent.

I personally update my net worth statement regularly.  A sample of the net worth statement I put together can be viewed by clicking here. Notice how I arrange assets by categories—how much I have in non-qualified and in qualified accounts, and then how I break down my real estate between personal and investment real estate. Finally, you see the liabilities.  A particular strength of this net worth statement is that it allows you to see the percentage of total assets you have in each category.

It is also important to track your net worth historically, so you can see progress.  Here’s a sample of how I do it.  Visually, you can see the progress of your net worth over time

For more information on goal setting, call Professor Ulivi at 714-771-6000 or email him at professor@ulivi.com