What is on the net worth worksheet
- Assets
- Everything you own that has a resale value: account balances, investments at today's price, your home at what it would sell for, vehicles at private-sale value. Use current values, not what you paid.
- Retirement accounts
- Include the full balance of 401(k), 403(b), IRA and similar accounts even though taxes are due on withdrawal; most planners count them at face value and note the tax separately. A defined-benefit pension can be left out or counted at its cash value if the plan states one.
- Home value
- A recent appraisal, or the average of two online estimates. Do not count the equity here; list the full value as an asset and the mortgage as a liability. The difference is your equity.
- Vehicles and valuables
- What a private buyer would pay this month, not the insured value. Furniture and electronics are usually left out: they sell for a fraction of their cost.
- Liabilities
- Every balance you owe today: mortgage, car loan, student loans, credit cards (the statement balance, even if you pay in full), personal loans, taxes due. Not monthly payments; balances.
- Net worth
- Total assets minus total liabilities. A negative number is common early on (student loans, a new mortgage) and is not a crisis; the direction of change year to year is what matters.
Why track net worth rather than income
Income measures the flow of money in; net worth measures what stays. Two households with the same salary can be in very different positions after ten years depending on what they saved, what they borrowed and how their assets grew. Checking the number once a year, on the same date, shows whether the extra mortgage payments, the 401(k) increase or the car purchase moved it the way you expected. It also surfaces things a budget hides: a growing credit-card balance that is being serviced but not shrinking, or a car that lost a third of its value.
Lenders ask for essentially this document when you apply for a mortgage or a business loan (a personal financial statement), and a financial planner starts from it. Keeping one updated saves an afternoon of digging through accounts when you need it.
How to fill it in
- Pick a date (year end, or your birthday) and use balances as of that date. Log into each account; do not estimate.
- Assets: enter current balances and current market values. For the home, use one method every year so the change is real, not a change in estimate.
- Liabilities: enter the payoff balance from each lender's statement, including the credit-card balance even if you will pay it off next week.
- Read the totals and the net worth line. In Excel the three are calculated; on paper, add each column and subtract.
- Write the number in the yearly tracker, and note anything that explains a jump (bonus invested, car bought, market drop).
- Keep the statement with your tax records. Next year, start from this one.
What to leave out
- Future income, inheritances, or the value of your degree. Net worth is what you could liquidate today.
- Household contents and clothing, unless genuinely valuable and insured as such.
- Frequent-flyer miles and reward points.
- Expected tax refunds, unless already filed.
- A business you own, unless you can defend the value (a recent offer, a multiple of earnings, or book value).
Reading the result
Compare yourself with yourself. The median US household net worth is around $190,000 (Federal Reserve Survey of Consumer Finances, 2022 data) and varies enormously by age, so national figures are of limited use. More useful: is net worth growing by at least what you saved this year? If not, an asset fell in value or a debt grew. Is the share of your net worth in your home above 70%? Then you are house-rich and cash-poor, and the emergency fund line deserves attention. Are liabilities falling every year? Those are the questions a planner asks of this page.
Editing the Word and Excel versions
In Excel the totals and net worth are formulas; add lines inside a section and the sums still include them if you insert rows above the total. Rename the pre-filled asset and liability labels to your own accounts. The yearly tracker calculates each year's totals and net worth; replace "Year 1" to "Year 5" with actual years. The budget planner handles the monthly flow that moves these balances, and the debt payoff tracker follows the liabilities side in detail.
Questions
What counts as an asset?
Anything you own that could be sold or withdrawn for money: bank balances, investments, retirement accounts, property, vehicles, business interests, valuables with a resale market, and money others owe you. Use current values.
Should I include my house in net worth?
Yes, at its current market value, with the mortgage listed separately under liabilities. Some people keep a second figure excluding the home ("liquid net worth") because they cannot spend the house; the worksheet makes both easy to read.
Should I include my car?
Yes, at private-sale value, with any loan under liabilities. A car usually shows negative equity for the first years of a loan, which is useful to see.
How often should I calculate net worth?
Once a year is enough for most people, on the same date. Quarterly if you are paying off debt aggressively and want the motivation. Daily tracking is noise.
Is a negative net worth bad?
It is common in your twenties and after buying a first home with a small down payment. What matters is that it rises each year. If it is falling while your income is steady, the budget planner will show where.
