Personal Net Worth Statement

What is Personal Net Worth Statement?

A Personal Net Worth Statement is a financial document that outlines an individual's assets, liabilities, and overall net worth. It provides a snapshot of an individual's financial situation at a specific point in time.

What are the types of Personal Net Worth Statement?

There are two main types of Personal Net Worth Statement: 1. Basic Net Worth Statement: This type includes essential financial information such as bank account balances, investments, real estate properties, and outstanding debts. 2. Detailed Net Worth Statement: In addition to the basic financial information, this type includes a more comprehensive breakdown of assets and liabilities, including detailed descriptions and current values.

Basic Net Worth Statement
Detailed Net Worth Statement

How to complete Personal Net Worth Statement

Completing a Personal Net Worth Statement can be a straightforward process by following these steps:

01
Gather all financial documents such as bank statements, investment statements, property valuations, and loan statements.
02
List and calculate the value of all your assets, including cash, investments, real estate, vehicles, and personal belongings.
03
List and calculate the value of all your liabilities, including mortgage loans, credit card debts, student loans, and other outstanding debts.
04
Subtract the total value of your liabilities from the total value of your assets to calculate your net worth.
05
Review and update your Personal Net Worth Statement regularly to track your financial progress.

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Questions & answers

We use this tool with every client and often find these 7 common line items most fail to consider and report on their financial net worth statement: Cars and other motor vehicles. Collectibles. Jewelry. Cash value on life insurance. Taxes and liens. Hospital bills. Student loans.
A net worth statement is a financial snapshot that shows your financial wealth at a given point in time and provides a useful summary of your financial affairs. Your net worth is the difference between your assets (what you own) minus your debts (what you owe).
Your net worth is what you own minus what you owe. It's the total value of all your assets—including your house, cars, investments and cash—minus your liabilities (things like credit card debt, student loans, and what you still owe on your mortgage).
How to set up a personal net worth statement. List your assets (what you own), estimate the value of each, and add up the total. Include items such as: List your liabilities (what you owe) and add up the outstanding balances. Subtract your liabilities from your assets to determine your personal net worth.
Net worth is the value of all assets, minus the total of all liabilities. Put another way, net worth is what is owned minus what is owed.
To calculate your net worth, you subtract your total liabilities from your total assets. Total assets will include your investments, savings, cash deposits, and any equity that you have in a home, car, or other similar assets. Total liabilities would include any debt, such as student loans and credit card debt.