Joseph McNair, CFP®, JD, CPA – U.S. News & World Report claims that an all-time high 54 percent of Americans will make a financially-motivated New Year’s resolution for 2014. Will you? A great first step is to build a net worth statement. The goal of a net worth statement is to provide a snapshot of your financial condition as of a specific date, for example January 1, 2014. An added bonus is that it provides a detailed listing of what you own, where it is located, and who you owe.
Creating a net worth statement is easy. Simply list your assets approximate their current value. Then, do the same for your liabilities. Subtract the amount of your liabilities from the value of your assets to arrive at your net worth. A sample net worth statement from CNN follows. If you go to (http://cgi.money.cnn.com/tools/networth/networth.html) you’ll get all the detail – just fill in the blanks. You can use an online calculator, an Excel spreadsheet, or a simple notebook to start the process.
Building a net worth statement makes a great New Year’s resolution because it provides a measuring stick for comparison. Do it at the same time every year to see how you are progressing toward your financial goal