Whether you’re a newbie to personal finance, or someone who is already well on your way to saving and investing, computing your net worth is a worthwhile exercise. Experts suggest doing it at least once a year most preferably with your spouse (and even with children, but make sure they understand that these are information meant to be kept within the family).
What is that so-called net worth? It is a snapshot of where you are on the road to financial freedom. It has the potential of delighting you, or depressing you, depending on your current state of affairs. But remember that it is just that—a snapshot—and the way it will look a year from now will depend on how determined you are to improve your finances.
It is a very, very personal document, and as these things go, you can either fudge it to make yourself feel better, or populate it only with brutally honest figures. It goes without saying the latter is better! 
How to do it? Alijeffty Gonzales’ just-finished Pinoy Financial Planning Guide (he is giving it away for free. Email me for a copy at lightdream (at) gmail (dot) com) has details and examples.
- List down your assets and liabilities. That basically means what you own and what you owe.
- Categorize your assets into current assets (stuff you can sell or use in the next three months) and other assets (stuff you won’t or can’t easily sell). Examples of current assets are bank account balances, cash on hand, market value of marketable securities like bonds, stocks and mutual funds. Other assets may include your car, house, furniture and fixtures, the cash value of your insurance policies, interest in a business, jewelry, you get the picture.
- Group your liabilities likewise. Current liabilities are what you owe within the next three months and recurring payments like credit card bills, loan and mortgage payments. In the “other liabilities” section, list down everything you need to pay three months from now.
- Deduct your liabilities from your assets, and there you have your estimate of your own net worth.
Through the years, I have found that having everything in black and white helps me keep my feet grounded. When you approach this exercise with an open mind, it allows you also to keep your eyes on that final goal of a happy golden age in retirement, despite all the distractions of the day. But always remember, while this little spreadsheet may feel like it summarizes your life, life is not all about money! It’s so much more than that, as I’m sure you all know
December 11th, 2008 at 3:55 am
when i was still single, i started to track my networth every 6 months for ~12 years. I was then working overseas. I started with few tens of thousand pesos with no liability and whenever i accumulated 150K or so, i would invest/buy a land. During the course of saving/investing for almost 10 yrs my networth accelerated almost 500% mainly because of the land appreciations. It’s a very fulfilling experience esp when you look at your record and saw how much you had before and how much your networth now. The key to increasing your networth is to diligently save , invest and avoid the temptation of overspending.
December 10th, 2008 at 10:34 am
I’ve been aiming to increase my networth. And in fact started blogging about it like most other personal finance sites abroad that I visited. It’s a good way to track my developments towards achieving goals.
November 23rd, 2008 at 1:00 pm
to QTP,
I accurately predicted the rise and fall of the PHP/THB relative to the USD, the sharp rise of the JPY and the decline of the AUD/EUR relative to the USD.. then capitalized on that
Pero I would not have been motivated to stay up late watch the news or read countless websites to do my analysis if it were not for a girl. May gusto sana akong ligawan then pakasalan na girl, kaya lang may bf na pala siya.
Thanks dotcomm for the feedback. You are an inspiration to all of us. I’ve also been bankrupt once. Actually, more than bankrupt.. in deep debt pa. But it was well worth it. I’m glad I went bankrupt, it was a valuable learning experience.
nibirU - I was not interested kung ok sa pinas or hindi, but thanks for your feedback na rin.
November 22nd, 2008 at 8:18 pm
haha, mine’s not even php 0.5 million! but you guys are inspiring. when i read this blog (the only blog i read aside from my gf’s), it keeps me going in terms of my financial plans. thanks everyone. i hope to learn from you and hope i could share more with what i will know along the way.
November 22nd, 2008 at 5:53 am
Millionaires now and millionaires 4 decades ago are entirely different thing. Before, you can buy cement at P3.40 per bag, now it cost around P215.00. Before, a ride is 10 centavos, now, the minimum is P8.00. Lots in Novaliches is about 40 centavoes, now, it is by the thoussands of pesos.
6 decades ago, the price of apartment per door is P6,000, now P 2,000,000 or more. You can even date your girlfriend on the best night club in Roxas Blvd. with P30.
Nothing to be proud of being a millionaire now a days.
November 21st, 2008 at 6:03 pm
to Salve hehehe
sana wag nyo icombine ang networth ng alipin nyo ha. kaya malaki siguro.
to D,
baket may 2M cash u? matanong lang.
November 21st, 2008 at 5:54 pm
QTP and Salve,
u made us laugh..!
“D says: Oh Sorry.. 3.7M lang”
- naku dude ng correction ka pa.
khit 0.5M lang cash mo ay ayus na yan dito sa pinas.
November 21st, 2008 at 3:20 pm
I wish it was Hermes…(I don’t like LV). Pero hanggang wish lang - parang di ko yata kaya ibitiw yong pera ko
November 21st, 2008 at 3:08 pm
I wont consider myself a millionaire if I dont have monthly passive income.
November 21st, 2008 at 1:14 pm
QTP, your comment made me laugh. what do you think millionaires do in their free time? hehe. sit on the couch and ask their alipins to wave feathered fans at them? really funny dude.
November 21st, 2008 at 12:06 am
Hi Salve,
May I have a copy of the guide?
Thanks a lot! Thanks also to Alijeffty Gonzales also for sharing it.
P.S. Emailed request too.
November 20th, 2008 at 7:28 pm
here in japan almost everyone’s a millionaire hehehe
with per capita income at 4M yen a year. my equity fund portfolio in Pinas took a beating this yr so I’m holding on to my lapads (10,000-yen notes) - world’s strongest currency in these tough times 
November 20th, 2008 at 5:10 pm
paano nyo nasabi na millionaires kayo? lol
kung millionaires kayo di na sana kayo nagbloblog dito.
peace (^_^)
November 20th, 2008 at 4:03 pm
Wow dami palang millionaires dito.
I’m 25 and worth under 2M. I have a lot of friends and peers who would count themselves lucky to be worth 1M.
November 20th, 2008 at 9:32 am
rchua, norvin,
my wife is rich. i married her for her money. she married me for my looks. LOL no half is self made.
dotcom,
my regards to dado banatao & paco sandejas (he’s my wife’s relative) i’m sure you know them
November 20th, 2008 at 3:00 am
baka makidnap kayo nyan, sinabi nyo worth nyo, hehe, the time you posted your comment when somebody(cracker) sniff the network , they can get your IP address as well as some informations of yours(takutin ba!)
November 20th, 2008 at 12:54 am
Hi D,
I would say dont make comparison for asian standards because thats a little money in business. The most imporant thing is you have savings –if you are an employee 4.7M is alot. If you are an employee then you are very good considering your age and the financial literary of a common Filipino.
Good work and keep it up!
November 20th, 2008 at 12:49 am
Hi Nina,
Yes. Thats an asset, problem is after a day you got it from LV or hermes store, it depreciated by at least 50%. I got 15$ shoes and 30$ watch.
November 20th, 2008 at 12:44 am
Im a pinoy technopreneur here in US. 31 yo single guy. I went bankrupt once and learned from my mistakes. Now — I have 122.3M net worth , (80M spending power) as I speak.
My Secret? Hardwork, Calculated Risk Investments and most of all SUPER FRUGAL — living below (not within) your means.
November 19th, 2008 at 10:40 pm
@pinoy investor
just how did you DID IT?
any inspiring advice?
November 19th, 2008 at 7:28 pm
Would shoes and bags count as asset? heheheehehehe just kidding!
November 19th, 2008 at 7:09 pm
Oh Sorry.. 3.7M lang
November 19th, 2008 at 7:08 pm
Guys, i am 26.5 years old. my net worth is 4.7M (2M in cash)… i need your honest opinion. For Asian standards, do you think I am below average, just average or above average? Thanks.
November 19th, 2008 at 6:53 pm
I update mine on monthly basis, when salary comes in, and monthly amortizations are settled. For the serious ones I suggest Quicken Personal Software.
November 19th, 2008 at 5:53 pm
pinoy investor, you must be very good…
November 19th, 2008 at 1:10 pm
over 40M from 5k out of college 18 yrs. ago