Calculating Net Worth

Almost 20 years ago I took a "Personal Financial Planning" class at Denver's Metropolitan State College. It was one of the most profitable courses I've ever taken (and a lot of work!). Interestingly I was older than my professor.

One valuable tip that she suggested: On New Year's Day, calculate your net worth.

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If you've read much of my blog, I hope you know that there are many things more important (much more important!!) than one's net worth! Like being saved!

A brief word about that:

Matthew 16:26, "For what profit is it to a man if he gains the whole world, and loses his own soul? Or what will a man give in exchange for his soul?"

Acts 4:12, "Nor is there salvation in any other, for there is no other name under heaven given among men by which we must be saved.”"

Acts 16:30-31, "And he brought them out and said, “Sirs, what must I do to be saved?” So they said, “Believe on the Lord Jesus Christ, and you will be saved""

One could be a kazillionaire and not have Christ ... and all is lost!

Another could be ill, infirm, and living in abject poverty ... and have Christ! And have true riches and an eternal hope!

2 Corinthians 8:9, "For you know the grace of our Lord Jesus Christ, that though He was rich, yet for your sakes He became poor, that you through His poverty might become rich"

Dear reader, this section between the red bars is very important!!

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Because finances are a "fact of life" in this life, it is valuable to periodically assess what one's debt is and what one's assets are. This defines the function of the Personal Net Worth Statement.

Here are some helps. I use Google Apps (Spreadsheet) for our own net worth statement (because it is "in the cloud" and easily shareable with my spouse!). Excel would be another good tool, or even pen on paper.

Excel Personal Financial Statement

CNN Money: What are you worth?

How To Calculate Your Net Worth

Why I do this: I want my dear wife to know exactly where we are financially in case God calls me home. It is a way to provide financial accountability and communicate with my wife in an organized way our personal financial position.