What Is a Net Worth Statement?
A Net Worth Statement is a financial document that reports the current financial worth of a company or individual. Net Worth Statements are used to exhibit the assets (what you own) and liabilities (what you owe). If you are planning to apply for a loan or to do some investments, financial institutes will probably request a personal Net Worth Statement to learn what your financial status is. The net worth is the result of subtracting liabilities from assets.
You can download our online Net Worth Statement template below to provide a realistic listing of the current and fixed assets you own and the current and fixed liabilities you owe.
All the financial information is categorized under these two main categories:
- Cash and Bank Accounts. This subdivision includes details of cash in hand, checking accounts, savings account, cash value of life insurance, etc.
- Investments. This is comprised of details of stocks, bonds, annuities, mutual funds, pension plans, etc.
- Personal Property. Include assets of your personal estate, such as automobiles, home furnishing, jewelry, collections, etc.
- Current Debts. Record debts like household, medical, legal, credit card, etc.
- Mortgage. Details of any kind of mortgage debts like home, land, etc.
- Loans. The value of debts like bank loans, automobile loans, education loans, life insurance loans, personal loans, etc.
Once this data is arranged, the sum of all items in the Assets column will result in the Total Assets amount. The Total Liabilities amount is calculated by adding all items under the Liabilities column. The difference between the Total Assets and the Total Liabilities will be the Net Worth. By signing the Net Worth Statement, you pledge that all the data contained in the sheet is updated and correct.