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Updated about 10 years ago on . Most recent reply

how to keep track of net worth
After reading many books on personal finance, a common recommendation is to keep track of your net worth. I like the idea of this. For me, RE investing is about CASH FLOW to grow and sustain the business and NET WORTH for purchasing power in retirement. As such, I have set goals both in cash flow and net worth. But how do you all track your net worth. I tried using excel, but I feel like it gets cumbersome with the incomes, depreciation, asset values... etc involved with owning RE. Is there something cleaner that is good for a monthly summary or do I just need to stick it out with excel?
Most Popular Reply

- Rental Property Investor
- East Wenatchee, WA
- 16,125
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I don't have a fancy spreadsheet or online tool, just a personal financial statement. Two columns, two pages. Page 1 is essentially an income statement - incomes vs out- flows. The next page is a balance sheet - assets vs liabilities. Net worth is at the bottom of pg 2 along with net income. No depreciation on mine. Once you have created one, it's easy to update. Lenders love it and it's usually a requirement to submit annually on commercial loans. Back when I was borrowing money the bank would ask "is that all you need to borrow?" It's not fancy, just states clearly where you're at.