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Updated about 10 years ago on . Most recent reply

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139
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Dustan Marshall
  • Investor
  • Hamilton, OH
27
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139
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how to keep track of net worth

Dustan Marshall
  • Investor
  • Hamilton, OH
Posted

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? 

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10,257
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Steve Vaughan#1 Personal Finance Contributor
  • Rental Property Investor
  • East Wenatchee, WA
16,125
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10,257
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Steve Vaughan#1 Personal Finance Contributor
  • Rental Property Investor
  • East Wenatchee, WA
Replied

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.    

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