It’s that time of the year again. Many of us are busy compiling paperwork, bank statements, and W-2 forms to file tax returns. But, have you slowed down long enough to calculate your net worth? Many of us don’t know how much we are worth. By definition, net worth equals assets minus liabilities. As individuals, our assets are our houses, cars, investments, savings, and etc. Our liabilities are our debts, mortgage, and utilities bills.
Use this Excel file to derive your net worth. The file is easy to use. There are 4 variables you need to fill out: your name, the date you use the file, your age, and your annual pre-tax income. The Excel file will even tell you if you’re above or below your target net worth. The target net worth formula embedded in the file uses the book’s The Millionaire Next Door formula.
If you’re above your target net worth, congratulations – you’re well ahead of the game. If your number is below the target number, don’t despair – you still have time to make some adjustments to get where you need to be. I wish you all the best of luck!