This post contains a free net worth tracking spreadsheet template for Microsoft Excel (.xlsx) and a link to a Google Sheets version. Please enjoy it for your personal use only. An explanation of net worth and why I use this spreadsheet follows the screenshot.
What is net worth?
Your net worth is a measure of your finances calculated by taking the sum or your assets and subtracting your liabilities (debts). So in a very simple example, if you have $10,000 in the bank and owe $2,000 on a credit card, you have a net worth of $8,000.
Your net worth can be negative. If you only have $1,000 in the bank and a $2,000 credit card balance, you would have a net worth of -$1,000.
You want to build a positive net worth, but if you’re starting out in life with student debts and not a lot of savings, yours will probably be negative for a while. (That’s OK…mine was negative for years until I paid off all of my debt).
Your net worth is less important than your net worth trend. It’s important to ask: Is my net worth going up or down this month? What about this year?
Obviously, you always want it to go up, but that won’t always happen. If you are saving and paying down debt, your net worth should increase. But, as you accumulate more and more assets, the value of those assets will fluctuate. If you own stocks or cryptocurrency, the value of your holdings may fall from month-to-month or even year-to-year. That’s generally to be expected, because assets like these appreciate over the long-run despite short-term volatility. But it could mean that your net worth is falling for months at a time even if you’re continuing to save.
How to track your net worth
Calculating your net worth is easy. You simply add up all of assets and all of your debts and subtract your debts from your assets. It’s important to remember, however, that your net worth changes all the time. Your net worth is like a snapshot of your finances at a given point in time.
To track your net worth, you compare a recent snapshot to an older one and see what’s changed.
For example, when you compare this month’s net worth to last month’s, these are some things that may be different:
- You’ve spent some money in your checking account.
- You’ve deposited $500 to savings.
- You’ve paid $200 in principal towards a credit card balance.
- Your 401(k) gained 2%.
All of the changes add up to either raise or lower your net worth. As you track it, you want to see that it’s going up almost every month. If your net worth slips for a month or two because of a big purchase that’s OK as long as it’s still going up over a longer period of time. What you don’t want is a net worth that doesn’t change or slowly goes down. That means you’re living above your means and headed for financial trouble.
What’s included in your net worth?
Everybody has a different opinion of what assets to include when you calculate net worth. You’ll always include cash, bank accounts, and investments, and usually any real estate.
Sometimes people will include cars and other big ticket belongings…personally I don’t because although you can sell your car for cash, making it an asset, cars depreciate over time and shouldn’t be considered part of your wealth. That said, I’ve included a spot for a vehicle (and you can add more if you want to), because I realize most people will want to count their car(s) as assets.
As for debts, the rule I use is if you owe it, include it. This includes credit card balances even if you pay them in full every month, and it might include taxes you’ll owe at the end of the quarter or on April 15th.
Using the net worth spreadsheet
It’s my hope that this spreadsheet is easy and self-explanatory. You can edit the row labels to match your accounts and add rows as needed. The formula cells are locked so you don’t accidentally break them. If you have comments or suggestions, please leave a comment!
Other ways to track your net worth
Although there is something nice about the simplicity of tracking your net worth in a spreadsheet, there are some elegant web-based net worth tracking apps that can make the process automatic via syncing.
My favorite is the Empower Personal dashboard because it’s 100% free to use and can track your entire investment portfolio, too — even if you have investments scattered all over the place.
Empower is a hybrid digital wealth management company and powerful finance app. In addition to paid investment management and advisory services, Empower offers a number of free tools and calculators to help with everything from net worth tracking to saving and retirement planning.
- Easy-to-use app provides financial 'big picture'
- Tools and calculators are completely free to use
- Great security, including two-factor authentication
- Wealth management fees can be be high
- May be subject to upsells
Vyzer is another new and beautiful app to check out. Vyzer is designed for serious investors who want deep insights into their net worth and investment performance. It’s free to use for a limited number of accounts, but requires a paid subscription to unlock all its functionality.
Vyzer is smart, data-driven investment portfolio tracking and financial planning.
Vyzer offers a comprehensive digital solution that combines performance tracking for both public and private investments, advanced financial planning tools, and personalized account management.
- Track all investments, including real estate & private companies
- First 3 accounts are free
- Handles even the most sophisticated portfolios
- May be overkill for average investors
Download the free net worth spreadsheet
- Use in Google Sheets: Free Net Worth Google Sheet
- Download: Free Net Worth Spreadsheet Template for Microsoft Excel