I recommend that everyone sit down once a year and figure out their net worth. Around the time you do your taxes seems to work out best, since that’s when you’ve already got all your financial documents spread across the dining room table, and a calculator at your elbow.
Net Worth is simply the total of what you own, minus what you owe. The idea is that each year you should see a gradual increase in your net worth. If not, you have to stop and yourself why.
Sometimes there’s a darned good reason. You got laid off from your job. Or you’ve got three kids in University.
But if the reason for the decline is because of an increase in non-productive spending, then it is time to assess your priorities. Perhaps a trip around the world is a priority, and you are willing to take the hit for it. You just need to be clear in your mind what the consequences of your financial decisions will be.
Net Worth Calculator
|
Assets |
|
| Bank Accounts | $ |
| Savings | $ |
| Stock Market Accounts | $ |
| RRSPs | $ |
| TFSAs | $ |
| Company Pensions | $ |
| Real Estate | $ |
| Vehicles | $ |
| Art & Collectables | $ |
| Investments | $ |
| Companies you may own (net) | $ |
| Other Valuable Assets | $ |
| Total | $ |
|
Debts |
|
| Credit Cards | $ |
| Lines of Credit | $ |
| Outstanding Bills | $ |
| Overdrafts | $ |
| Student Loans | $ |
| Car Loans | $ |
| Mortgages | $ |
| Investment Loans (like for RRSPs) | $ |
| Business Loans | $ |
| Other Loans & Debts | $ |
| Total | $ |
| Net Worth | |
| Total Assets minus Debts | $ |
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