One Snarky Chica with Issues

To get an accurate financial snapshot of where you are versus where you want to go you really need to see what your net worth is currently.

Calculating your net worth is actually pretty simple. If fact, if you have ever taken any basic accounting classes you already know how to calculate your net worth.

Net worth is simply all of your assets minus all of your liabilities.

You may wonder what about your car because it may be worth say $10,000 but you still owe $8,000 on it. So what do you do about that?

Record the $10,000 under assets and record the $8,000 under liabilities.

If you are unsure of where to start when it comes to creating a spreadsheet to track your net worth there are a few templates available for free on the Microsoft Office online templates page. Personally, I have taken the best from a few different free templates and made a more customized spreadsheet.

You can even track your net worth online with NetworthIQ™ at no cost. Money Hacks did a recent post on this service that you might want to check out.

I have also found that keeping a net worth spreadsheet that I update monthly helps me to stay on track of my investments and their progress. It is also a great motivator see that that net worth climbing!

Also check out the related post: Take a financial snapshot.