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Finance : What is your Net-Worth?

Net-Worth is the difference between your Total Assets and Total debts.

The target is to become a High Net-worth Individual. The first step towards it is to know what your net worth is as of today. Follow the simple steps below to find it. Do not aim to fill it all at once. It may take an hour or two to collect the information.


STEP 1: Open a new spreadsheet like MS-Excel or Google spreadsheet

STEP 2: Mark the first sheet as debt

STEP 3: Mark the second sheet as assets

STEP 4: Compile all the debts in the debt sheet

STEP 5: Compile all the Assets in the assets sheet

STEP 6: Compute the difference between the Total Assets & Total Debts

STEP 7: Update this spreadsheet on a quarterly basis


You can achieve it in two ways...Reduce the Debt and (or) Increase the Assets...
Lets look at which one you need to take-up...in the next post


PS: If you have a pending home loan I would put in debts rather than assets...Even though it may be a conservative estimate of your net worth ,It will show the realistic picture of how far you are from "debt-free" day...

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