There’s two things you need so that you can figure out your net worth - Assets and Liabilities. Actually, there’s a specific formula you can follow so you know its correct:

Assets = Liabilities + Equity

A Balance Sheet is a report that is based on the principle above, it’s often used by big businesses to let their investors know more about the company’s financial position. You can build one for yourself to help you calculate your net worth in only a few steps that will only take you a few minutes to complete. Then, you’ll have clarity into your financial position.

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How to actually calculate your net worth!

Remember this formula from above: Assets = Liabilities + Equity? This is what we need to calculate your net worth. Now we just need to plug in your numbers - grab a pen and paper or a spreadsheet, whatever works for you!

Start by listing out all your assets, these are things of value. You can be as high leveled or detailed as you’d like it to be. An easy way to go about this is to set a threshold to work with and only track amounts above that number. For example, you can set a $1,000 threshold and only track assets that are worth $1,000 or more. So you don’t end up tracking tons of small assets.

A lot of assets I see individuals own include cars, homes, rental properties, investments, cash, etc. For now, you only want to track the asset value and you want to make sure that it is reasonable. You don’t want to say your car is worth $50K if you can easily find a similar car for under $30k, be realistic.

Once you’re done listing all your assets, add them all up so you can calculate your total assets. You can think of this as the value of everything you own.

Next, let’s look at your liabilities. This is what you owe. Some common examples of these are car notes, mortgage loan, credit card debt, student loans, etc. Just like in the step above, you want to list out all your liabilities in a separate column. This should be a little quicker since you can easily figure out the balance of the debt by looking at a recent statement.

Once you’ve listed out your liabilities, add them all up so you can calculate your total liabilities. You can think of this as everything you owe.

The last step is simple, subtract your liabilities from your assets. This is your equity, you can also think of this as your net worth.

What now? Now you can update this calculation periodically and see how your net worth is doing!

Second half of 2026 goals

If you kicked off the year with any sort of financial goal, now is a great time to revisit that goal and make changes. Maybe you’ve met your goal, or nearly met it already, and you want to adjust that goal up. Maybe there are new things to plan for now compared to 8 months ago, you can update for any new goals. Maybe you’re not quite where you hoped you’d be, that’s ok! Sometimes life happens not quite how we plan it, revise it for an updated goal you’re likely to achieve.

Let’s keep working towards those goals and focus these next few months.

If you want my help in achieving those goals by helping you become financially literate, check out my new community.

I’m currently building everything out, and bringing the community for the ride with live classes, Q&A, courses, and more. Im offering new members special Founding Member pricing which is available through 8/6(you lock that price), then standard pricing applies.

Next: Real Estate!

Coming soon - ACTUALLY now 😎

As always, I hope you found this information helpful! See you next week!

Neyra

Please remember that while I am a CPA, I am not your CPA. Please consult a licensed professional on any financial, tax, or business decision you contemplate.