Net Worth Statement - Part V

As promised, here is an example of a net worth statement. I modeled this after one that I found in an out-of-print book called The Fast Forward MBA in Financial Planning by Ed McCarthy.

              Assets                
Financial Assets                    
Cash                                     200
Checking                               3,000
Money Market Accounts                  7,000
Savings                                6,000
CDs                                    6,000
Payments Receivable                   10,000
Total Financial Assets               $32,200

Personal Assets                     
Clothing                               5,000
Furnishings                           15,000
Autos                                 30,000
Home                                 200,000
Other                                  1,100
Total Personal Assets               $251,100

Investments                         
Stocks                                25,000
Bonds                                      0
Mutual Funds                          35,000
Retirement Plans                     250,000
Life Insurance Cash Values                 0
Business Interests                    25,000
Real Estate                                0
Total Investments                   $335,000
Total Assets                        $618,300
           Liabilities              
Short-Term                          
Utilities                                500
Credit Cards                           3,000
Other                                  1,500
Total Short-Term Liabilities          $5,000
                                    
Long-Term                           
Auto Loans                            15,000
Student Loans                         30,000
Mortgage                             175,000
Other
Total Long-Term Liabilities         $220,000
Total Liabilities                   $225,000
NET WORTH*                          $393,300
*($618,300 - $225,000 = $393,300)

As you can see, it is a pretty straight-forward exercise. Notice that this couple's net worth is a positive $393,300. Had their liabilities been greater than their total assets of $618,300, they would have had a negative net worth.

Tomorrow's post will be about the cash flow statement. YIPPY!

Other posts in this series:

Financial Planning Basics - The Net Worth Statement

Net Worth Statement - Part II

Net Worth Statement - Part III

Net Worth Statement - Part IV