A personal finance blog dedicated discussing such topics as budgeting, asset allocation, 401K, IRA, cash flow, insurance, financial planning, portfolio management, and other areas in personal finance.


Sunday, April 03, 2005

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.

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

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

Utilities 500
Credit Cards 3,000
Other 1,500
Total Short-Term Liabilities $5,000

Auto Loans 15,000
Student Loans 30,000
Mortgage 175,000
Total Long-Term Liabilities
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