← The Treasurer
The Treasurer · № 16

Net Worth Statement

Built a real personal net worth statement listing assets and liabilities, and updated it at least quarterly.

The idea

Net worth is the snapshot of where you actually stand. Most adults can't tell you theirs. Have your kid list every asset, every debt, total it. Update it every quarter. The trend line is the lesson, not the number. Up is good. Flat is information. Down is a signal. Looking at the truth every three months is what separates people who handle money from people who hope it works out.

Steps
  1. List every asset over $50.
  2. List every liability.
  3. Calculate net worth.
  4. Update quarterly for at least a year.
What counts

Quarterly net worth statements covering a year. The four snapshots are plenty.