Assets to Include (2)

• Most furniture, the kind most of us have, is probably best omitted because second-hand furniture typically brings very little. Valuable antiques are a different matter.

• Collectibles and artwork must be valued fairly at the market value and not what you paid for them. A stamp collection that cost you $5,000 to put together might fetch only 1/10 that amount when sold, and it’s this latter value you should use in a net worth calculation.

Future income generally should not be included. Examples are your next paycheck and things such as pension or social security payments. You can make an exception for one-time payments you know about but have not yet received, such as your annual bonus at work.

Liabilities to Include

Liabilities are easier than assets because you must include all of them. Any money you owe must be counted in the liability column, including personal loans from family members.

What about credit card balances? If you let them ride from month to month, they certainly must be included as a liability. If you pay the balance in full each month, you can omit it, but you also have to omit from your assets the cash you will be using to pay the card off.

Taken From : Manage Your Money and Investments with Microsoft Excel

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