Section 1: Key Financial Questions
Your net worth = what you OWN minus what you OWE
Knowing your true starting point is key to successful wealth building. Think of it like a diet plan. How will you measure progress if you don't know your starting weight? Creating a net worth statement is essential regardless of your income or age. This financial snapshot highlights your current position and identifies areas for improvement and the distance left to reach your goals.
Below you will find a sample template for a net worth statement. If you haven't created one in the past year, now is a great time to update or create yours. Don't worry about making it perfect, as even a rough draft can offer valuable insights, and this will be updated as you go. This will help you track progress and stay motivated as you work towards your goals. Feel free to use the provided template or design your own, attaching it to this workbook for easy access. Remember to record your net worth number on the front cover for quick reference in the future.
Net Worth Statement Suggestions:
Do NOT include social security or pensions in your net worth as these are only promises of future income. These are not guaranteed, so they are not generally considered assets. However, they should be included as a footnote.
Do NOT include kids’ college savings or other funds not meant for you on your net worth statement. Again, these should be included as a footnote.
Do write what you are thankful for on each net worth statement as this can be a fun way to look back and appreciate the progress. (This can be written on the cover of this workbook, so you can easily look back and track your progress.)
Do keep a record of all accounts with access details alongside your net worth statement. This will help aid loved ones in case of emergencies.
(Check out “What If” folder/binder information on ???.)
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