How to Create Your Net Worth Statement?
Learn how to create your own net worth statement today. A net worth is the basis of wealth. Rich people are rich because they are focusing on building their net worth. A net worth is very important especially if you are making a business partnership or want to borrow money to the bank as your capital. If you are a government official or government employees, you are required to update your net worth statement every year so that the government will check whether you are doing an anomalous activities especially “corruption”.
There are many ways to make your own statement, you can use ready-made template or net worth generating software. You can also create in a Microsoft Word format if you want. Make sure all your assets and liabilities are all written.
Things Needed:
Computer, laptop, caculator, bond paper, printer
How to Create Your Net Worth Statement?
Follow this simple and easy to follow instructions when creating your statement of assets, liabilities and net worth.
1. In your computer, open your MS word. Name your documents as “Updated Net Worth”.
2. Put your name, address, job, age, birthday, etc.
3. In a word document, create a 3 columns (column for assets, column for liabilities and for net worth)
4. For first column – your assets. Compute all the market value of your assets including your house, car, real estate, stock shares, mutual fund shares, your Rolex watch, your $10,000 worth LED TV, your expensive appliances (eg Two Door Refrigerator), and anything that can be converted into cash.
5. In a second column – your liabilities. Calculate the total amount of what you owe. If you have credit card bills, mortgage and other things that only take money from your pocket.
6. Last column – your Ne Worth. The only thing to do to know your worth is to subtract your liabilities to your assets. Example, if you have worth $1.3 Million assets and you have $300,000 liabilities, therefore, your Ne Worth is $1 million. That’s simple!
7. Print your document and do not forget to make a signature over your printed name.
Tips & Warnings
Honestly create your net worth, do not cheat it. Make sure you sign under the statement you printed from your computer.
Talk to a certified financial planner if you find creating your own net worth so complicated. In our next topic, we’ll discuss how to increase your net worth and the different ways to track your net worth. Now you know how to create your net worth statement, track it and increase your net worth Stay tuned to Investment Total to received updates. Thank you.