How I Calculate Net Worth

NET WORTH = ASSETS – LIABILITIES

What I consider ASSETS:
Cash on hand
Chequing accounts (the fiance and I still carry separate individual accounts, even though we use one budget spreadsheet – and pay off each other’s ccs etc, pay for wedding vendor downpayments, etc.  Shared money!)
(minus) Work reimbursement money:  the fiance gets his reimbursement cheque up front, while I hand in my work receipts at the end of the month then get a cheque.
(minus) Credit cards.  We try to pay EVERYTHING on cc for cashback rewards. We never carry over a balance though and send payments at least weekly.
Friendly loans:  A cousin borrowed money from me a year ago and is paying it off monthly.  This is set to be paid off by summer.
Gift cards
– TFSAs 
– RRSPs
– Vehicles:  This differs between individuals.  We don’t put  value on my fiance’s car.  But my car… carries a value that decreases every month.   The reason behind is that in a span of 5 months, I had a car written off after an accident AND a car stolen.  That’s TWO car loans in 5 months.  In order to not take a drastic hit on my net worth, I balanced it out with a car value.

LIABILITIES
– Car Loans x2
– Student Loan: 5.5% interest 😦
– Emergency Fund: Some consider this an asset since it’s only money set aside and not necessarily earmarked for a specific expense.  However, I intend to use this to pay down the fiance’s student loans AFTER the wedding.  For now, we need all the liquid we can get.
– Tax Fund:  I pay quarterly and save for it every month.
– Slush Fund:  We set a $600 discretionary budget for the both of us (which currently, does NOT meet our needs at all, looking to increase this).  Anything extra (read: none) goes in this fund.
– Travel Fund
– 
Gift/ Events Fund
– Car Fund
– Wedding Fund:  
Summer 2017!  Can’t wait!!!
– Charity Fund

As you can see, all our sinking funds are in our liabilities section.  This is because these are intended to be spent in the next 1-12 months.  We save monthly even for yearly expenses… or at least save for those big expenses little by little in advance.

No mortgage to speak off (yet) so a house asset/ mortgage doesn’t complicate this calculation.

How do you calculate your net worth?

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