Collecting Asset and Debt Data

On this page, you will:

• learn how to collect asset and debt data.
• learn how to build your net worth statement.

The following notes are to be read in conjunction with the Net Worth Example.

Asset

You may classify anything that can be converted to cash as asset. However, even when you can sell your golf set, furniture, paintings and others in a garage sale, we normally do not classify these as assets because the sales money from these items are not significant. But if your furniture is antique or your painting is Mona Lisa, then they will sell for a lot of money and you should treat them as assets.

Notice there are 3 columns with “Date 1”, “Date 2” and “Date 3”. When you first fill up this worksheet, fill up under Date 1. Then 6 months or 1 year later, fill up the values under Date 2. This way, you can see whether you have made progress or not by comparing your net worth at Date 2 with your net worth at Date 1.

You can find out the market values are for your assets by scanning the classifieds, or eBay, the closing prices for your stocks and funds, your bank statement or savings book and so on.

Debt

Debt is your obligation to pay. Look at your loan statements, credit card statements and your checking account (if you have overdraft). Find out the outstanding balances are in these accounts.

Include loans you took from your family members or friends. And don’t forget to include taxes if you owe the Inland Revenue.

When you have finished, you are ready to analyze your net worth.

Next: Analyze Your Net Worth.

Previous: Analyze Your Cash Flow.