Understanding Your Net Worth Sheet
Updated: Aug 27, 2021
Knowing your net worth is an essential part of your path to becoming a master of personal finance. And it’s rather strange when we think about it. We like to monitor the net worth of famous entrepreneurs like Elon Musk or Jeff Bezos, but we rarely give it much thought when it comes to our own net worth.
Perhaps when we compare it to the billions these ultra-successful people generate, it may seem insignificant. However, this couldn’t be further from the truth. By understanding your net worth and what affects it, you can take actionable steps and increase it over time.
At Nordveld Flow, we want to help you understand your net worth so you can gradually build it. Effortlessly and automated. For that reason, we created the Net Worth sheet where you can always see your net worth, completely up to date.
How Does The Net Worth Sheet Function?
To calculate your net worth accurately, we must take into account all of your current assets and liabilities and their value.
The good news is Nordveld Flow does this automatically for you functioning as a budget calculator. How?
Firstly, the add-on collects data from all your connected accounts. In second place (but equally important), it adds information from all of your manual accounts to build a complete financial picture. Let’s examine the details closely.
Information Available in Your Net Worth Sheet
On the top left corner of the Net Worth sheet right next to Nordveld’s logo, you can see your total net worth expressed in numbers, based on the main currency you selected in the settings tab. This information is also present in your Financial Dashboard sheet.
However, it’s interesting to learn the makes up of this field and how to discern between different columns with data in the Net Worth sheet.
You will notice there is a column for each of your connected accounts. The number available in the first cell of this column is the current balance on your account. The same goes for your manual accounts. The “Total Assets” column is a sum of all connected bank accounts with a positive balance, like checking and savings accounts and all “Asset” manual accounts. Respectively “Total Liabilities” column represents the total of all your connected and manual liability accounts. Even though you might have asset or liability accounts in multiple currencies, you shouldn’t worry. Nordveld Flow will convert these automatically in your main currency using accurate data from Google Finance.
Your Net Worth is the result of your total assets minus your total liabilities. If your Net Worth turns out negative, you shouldn’t be concerned. It’s completely normal. Perhaps you recently obtained a mortgage or taken out another loan to finance a major purchase in your life.
As time passes by, you want to increase the amount and value of your assets and decrease the amount and value of your liabilities. That’s how you boost your net worth and achieve long-term positive results.
Remember that the Net Worth sheet interacts with information from virtually all other personal budget excel templates in Nordveld so it serves as a good feedback system on your overall financial situation. Nordveld Flow helps you budget automatically and improve your spending and saving habits. Once you optimise your budget, you can begin to save and invest more, so your assets and net worth grow faster and easier than ever before. Join the budgeting revolution today and become a part of Nordveld. Your personal finance - effortlessly.