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When you want to become a millionaire, one of the tools needed in determining the financial status as of a certain date is a Net Worth (NW) Report or balance sheet. The NW Report shows the assets, liabilities and the net worth as of a certain date. To compute for the net worth as of a given time, you will deduct total liabilities from the total assets. The NW Report can be prepared weekly, monthly, quarterly, semi-annually or annually by yourself, bookkeeper, accountant or any person who understands accounting. Mostly, the NW Report is prepared at the end of each year, together with the income statement for purposes of filing income tax return. The NW Report is also used when your apply for business loans, bank loans, mortgage loans and for other purposes.

Please click on ==> Net Worth Monitoring Report-pdf.pdf. It shows a detailed list of assets, liabilities and net worth as of December 31 of 2012, 2013 and 2014.

As shown on the Net Worth Monitoring Report, the person who wants to be a millionaire did not have a net worth of at least US$1 million in 2012. However, the person became a millionaire at the end of 2013.

Unfortunately, the market value of real estate properties in 2014 (residential house, vacation house, apartment buildings and commercial buildings) went down because of the economic recession and a lot of tenants abandoned the apartment and commercial buildings due to unemployment and lack of business. Plus, the market value of stocks and bonds and mutual funds plummeted. As a result, the person lost some money, became poorer and not a millionaire anymore.

You can see some people own beautiful cars, live in a big house and act like a millionaire but in reality, there are not millionaires until you see their NW report.

Even if you are not a millionaire, you can use the NW report to find out your financial status. After listing all your assets and liabilities, you will know if your net work is negative (financially poor) or positive (not financially poor).

TIPS

You can download the free OpenOffice.org Office software and use the CAL program to prepare your Net Worth Monitoring Report. You can use the report every year by adding YEAR columns (2012, 2013, 2014, 2015, 2016 and so on). You can insert or add any line item within the ASSETS or LIABILITIES group.

You may keep the Net Worth Monitoring Report and use it when you apply for a business loan or other types of loans that require this kind of report.

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