in the previous post, i stated how important it is to see where you stand from a financial point of view before beginning investing.
Here i hope to bring you an improved version of calculating your balance sheet.
There are 3 steps to creating your balance sheet and thus determening your net worth. These steps are:
1. Gather all your records:List all your assets and their value
- use the internet for research
- be as precise as possible
- use fair-market value for real property (homes, cars, etc)
- do not forget to include any money owed to you by friends, relatives, etc
- for automobile use Nada Guides and ebay as references
- values of antiques can be referenced on ebay
- values of stocks and mutual funds can be tracked down at Yahoo Finance, MSN Money Central to name a few
- values of savings bonds can be tracked at Treasury Direct
- be honest
2. List all your liabilities a.k.a debts and their balances
- this includes past-due or current due bills
- be honest
- list ALL your debts, even money you owe to your friends, relatives, etc
3. Use the excel sheet provided to calculate your net worth.
Again, it is very important to be honest and sincere. Your goal is to find out your true net worth and your current financial situation.
(Note: this is not my spreadsheet. All credit goes to It's Your Money
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