Part of:\u00a0How Does the Net Worth Planning Process Work?<\/a><\/strong><\/p>\n

Calculation of net worth can be done with a variety of tools<\/span>.\u00a0 Though many tools exist, they all must involve the essential concept of subtracting liabilities from assets.<\/span><\/p>\n

These tools include a simple worksheet, an online calculator, a spreadsheet based calculator or a personal finance computer program to name a few.\u00a0 More complicated calculators exist for individuals with more complex financial situations<\/span>, i.e. business owners or those with extensive assets. For example, using a spreadsheet based worksheet allows you to customize your net worth calculator to fit your unique financial situation.<\/span> Once established, future calculations will be much easier by using your template.<\/p>\n

Though the principle is simple, it is very easy to fudge the numbers to paint a prettier, albeit false, picture.<\/span> The purpose is to establish an accurate valuation of current net worth.\u00a0 It is necessary to establish the fair market value of all assets.\u00a0 Remember to remain conservative.<\/p>\n

When net worth is determined, keep in mind that the result is for that specific date.<\/span> In reality, net worth fluctuates daily.<\/span> This is because the values of investments fluctuate, property values generally appreciate, automobiles usually depreciate, etc.<\/span><\/p>\n

The process of calculating net worth is often tedious.\u00a0 It involves the collection of all financial records.<\/span> Though painful, it is a necessity.<\/span> On the bright side, many of the documents used in calculating net worth are also used in other areas of financial planning.<\/span> Digging up and looking at these documents will also provide a perspective<\/span> you may not otherwise be privy to.\u00a0 The more familiar<\/span> you become with the process, the easier<\/span> it will become.\u00a0 Your record keeping will improve<\/span> and when the time comes you will be much more efficient<\/span> at retrieving the required data.<\/p>\n

Calculation of net worth should be done annually at a minimum and if possible around the same time each year.<\/strong> A single net worth calculation doesn’t tell much about the financial situation of the family.\u00a0 Over time, trends can be identified and a family can determine whether they are on target or not and whether adjustments should be made.<\/p>\n

Note:<\/strong> If you desire to use a spreadsheet to calculate your net worth, many templates can be downloaded for free and modified to suit your individual needs. If you do not have a spreadsheet program like Microsoft Excel, there are free programs available like OpenOffice\u00a0Calc.\u00a0 OpenOffice\u00a0Calc is available as part of the OpenOffice software suite from www.openoffice.org.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Part of:\u00a0How Does the Net Worth Planning Process Work? Calculation of net worth can be done with a variety of tools.\u00a0 Though many tools exist, they all must involve the essential concept of subtracting liabilities from assets. These tools include a simple worksheet, an online calculator, a spreadsheet based calculator or a personal finance computer […]<\/p>\n","protected":false},"author":1,"featured_media":3994,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[2,14],"tags":[33,124,151],"_links":{"self":[{"href":"https:\/\/maysfinancial.local\/wp-json\/wp\/v2\/posts\/643"}],"collection":[{"href":"https:\/\/maysfinancial.local\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/maysfinancial.local\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/maysfinancial.local\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/maysfinancial.local\/wp-json\/wp\/v2\/comments?post=643"}],"version-history":[{"count":0,"href":"https:\/\/maysfinancial.local\/wp-json\/wp\/v2\/posts\/643\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/maysfinancial.local\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/maysfinancial.local\/wp-json\/wp\/v2\/media?parent=643"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/maysfinancial.local\/wp-json\/wp\/v2\/categories?post=643"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/maysfinancial.local\/wp-json\/wp\/v2\/tags?post=643"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}