Net Worth Calculator Template - Excel Workbook

Beside compiling net worth, this template provides more information than just list of assets and liabilities. You can download this Net Worth Calculator (Excel Workbook) here.

It will let you know, based on your assets and liabilities list,

1. the income generated by assets and the rate of return on the assets
2. the asset appreciation rate of your assets and whether it beats inflation
3. the amount readily available for emergency like accident, job loss, deposit to buy property, etc.
4. the proportion of your borrowings which is non productive 

Dashboard view for Summary

From the perspective of financial planning, we need a few things from our portfolio of assets.



We need the portfolio to provide passive income to cover our living expenses after our retirement. We need the portfolio to grow in value higher than inflation so that we can continue to live the same lifestyle we want. We need it to be readily available as cash for emergency.

However, different classes of assets meet difference requirements. For instance,

• while your home will grow in value beating inflation, it is not liquid and it does not generate income.
• while your fixed deposits give you interest income (despite low) and readily available as cash, it will not grow in value and subject to loss of value due to inflation

We need to structure our portfolio with proper combination of assets classes and loans, to meet all the needs above.


This Net Worth Calculator is meant to provide useful information for you to have a long term view to plan and manage your assets and liabilities.

• Are your assets generating income lower than that of savings deposits rate? 
• Are your assets value appreciation high enough to beat inflation?
• Are you keeping too little assets that is readily convertible to cash for emergency like job loss, accident, etc.?
• What is your return on assets? what is your assets appreciation rate? both information is useful for long term projection of your retirement fund.

Enter your list of assets in 5 different categories/ classes. Enter market value, annual income and value appreciation growth rate of each line.

Enter your assets value, income and growth rate in the highlighted cells.

Enter your list of loans and liabilities in 5 different categories/ classes. Enter the outstanding loan amount and the interest expense for one year.

Enter your loan value and interest rates in the highlighted cells.

Understand how each category of your assets performed and the cost of your liabilities.

Understand each category of your assets and how they serve your
purpose for income, growth and liquidity.
Can the assets be improved? Can the combination be improved?

Review the analysis and thinking thoroughly on how to

• improve your assets,
• improve your liabilities,
• improve your combinations of assets, and
• improve your combinations of assets and liabilities

Review & carefully think through the analysis and actions suggested. 

You will learn new perspective of your portfolio by just go through the exercise itself compiling your own net worth. You may download the Net Worth Calculator here or use the Excel online version.

I am curious to know whether this workbook is useful to you and how it can be improved. Feel free to leave comments below.

Retirement Planning Calculator

This Excel template is a Retirement Planning Calculator. (You need to DOWNLOAD the Excel file to your desktop. It may not work on browser.)

It helps you to calculate the value of your retirement fund based on a few simple factors like your age, monthly savings, savings balances, inflation rate, desired living expenses at retirement, etc. It produces the chart below.

Retirement Fund Value Chart

Enter a few simple variables in the highlighted color cells to calculate the fund value at retirement age and your age it can cover your retirement living expenses.

Retirement Fund Calculator. Click the image to see the full size of image.

You can download the Retirement Planning Calculator Excel file here.

Good Retirement Planning

The shape of the graph above is a tad bit depressing as it seems you may outlive your retirement fund. There is a better way to plan.

A good retirement planning will give you a more inspiring chart like the one below. You can be sure the retirement fund will beat inflation, outlive you and leave something for your children.

A good retirement planning. 

This graph trend is possible when your fund gives you good returns and its value increases over the years. This is possible if you invest wisely in property and dividend stocks. These are the assets that will beat inflation and provide incomes, i.e. rental & dividend, without depleting its own value.

I added a variable, annual "Asset appreciation" rate of the fund. This is an ANNUAL rate. The annual rate for assets in cash or fixed deposit is zero. The annual rate for landed property is around 5% - 8%.

You can download the Retirement Planning Calculator Excel file here.

The principle of building wealth in a nutshell

The ultimate financial goal is to be so darn rich that such expenses like children's college education are like buying a movie ticket. You don't set a financial goal to buy movie tickets. Do you?

Ultimately financial planning is about planning of assets that generate income. The ultimate desired result is sustainable and continuous income, the means is building, managing and protecting the assets that generate such income. The GOAL is continuous income, the MEANS is assets planning.

Set your financial goals in terms of sustainable and recurring monthly income. Maximize the income generating capability of your assets. As you grow older you change your income generating pattern. You move away your income generating assets from human assets, i.e. your time and labour, to financial assets, i.e. businesses, stocks, real estates, etc. You must then remember to protect these assets accordingly.

This is the principle of effective financial planning. Simple and powerful.


Part 1 : The conventional idea
Part 2 : The breakaway wisdom: income and assets
Part 3 : Building assets(i)
Part 4 : Assets(i) planning
Part 5 : Further exploration on the principle

Quick takes
1. The principle in a nutshell
2. Definition of assets(i)
3. Classes of assets(i)

The conventional idea

The first step of conventional financial planning is inevitably setting such financial goals like sending children to college, buying a new car, saving for a down payment on a house, going on vacation, paying off high interest credit card debt, or planning for retirement etc.

We disagree with this process. The fundamental flaw of such financial planning process lies in the assumption of the need to set a limit to what one can earn. Yes, by setting GOALs in terms of expenses we assume such expenses are worth to be goals that we should spend our life's on. In our mind we set a limit on our earnings capability so that such expenses now are financial goals.

So instead of drafting a financial plan that makes us rich and makes every big ticket item so affordable, we draft a plan that makes every big expense a goal. We live a life of the middle class struggling to pay for our insurance, our children's college expenses, a slightly bigger car, home loan, credit card debts, etc.

Your financial advisors tell you that base on your current income, this is what you can get for the rest of your life. And you accept that.

The ultimate financial goal is to be rich enough that such expenses like children's college education are like buying a movie ticket. You don't set a financial goal to buy movie tickets. Do you?

Part 1 : The conventional idea
Part 2 : The breakaway wisdom: income and assets
Part 3 : Building assets(i)
Part 4 : Assets(i) planning
Part 5 : Further exploration on the principle

Quick takes
1. The principle in a nutshell
2. Definition of assets(i)
3. Classes of assets(i)

The breakaway wisdom

Ultimately financial planning is about planning of assets that generate income. The ultimate DESIRED RESULT is sustainable and continuous income, the MEANS is building, managing and protecting the assets that generate such income. The GOAL is continuous income, the MEANS is assets planning.

There are four types of income generating assets in general:
1. Human assets, i.e. your skills, your labour, your knowledge, your capabilities, etc.
2. Paper assets, i.e. stocks, bonds, etc.
3. Real estates, and
4. Businesses

These assets put money, the recurring monthly income, into your pockets.

Set your financial goals in terms of sustainable and recurring monthly income. Maximize the income generating capability of your assets*. As you grow older the income generating pattern should change. You move away your income generating assets from human assets, i.e. your time and labour, to financial assets, i.e. businesses, stocks, real estates, etc. You must then remember to protect these assets accordingly.

* When we talk about assets, we are referring to assets and liabilities in terms of financial only. We use Robert Kiyosaki's definition of assets and liabilities: assets put money into your pocket and liabilities take money away from you pocket. So having a big house and a big car that you have to maintain but not generating income are liabilities even though they are probably assets in terms of quality of life. So children are, strictly financial, liabilities even though they are God-given blessing to our life and are our most precious assets (not in financial terms), and that we are more than happy to have such financial liabilities in exchange for their existence.

It is indeed all about "Income Generating Assets", OR assets(i).


Part 1 : The conventional idea
Part 2 : The breakaway wisdom: income and assets
Part 3 : Building assets(i)
Part 4 : Assets(i) planning
Part 5 : Further exploration on the principle

Quick takes
1. The principle in a nutshell
2. Definition of assets(i)
3. Classes of assets(i)

Assets(i) building and planning

When young, we go to college to equip ourselves with knowledge and skills to increase our income generating capability. Our main income generating assets are human assets, i.e. our time, skills and knowledge. We protect these income generating assets, e.g. our body and brain, with life insurance. We increase the income generating capability of these assets with better knowledge and refined skills through training and experience.

With the income, we slowly build our financial assets, e.g. businesses, real estates and stocks.

After many years, even if we do not want to retire (for we are doing the things that we love and earning affluent and sustainable income out of it) we must be ready for the fact that one day our body will slowly lose its functional capabilities to earn. We will stop working. We will need to pay medical bills, healthcare expenses and will want to leave behind a financial legacy for our children and charity organizations that are in need. Thus, before the happening of all these inevitable natural events, we need to move our income generating pattern, from mainly consisting of human assets to financial assets. These financial assets will still give you a sustainable and continuous monthly income, keep growing and without depleting its original principal. (Yes, your depleting unit trust nest, that you built when young in order for you to withdraw when old, is a big problem. But your real estates that give you stable income until your body turn into ashes are one of the right instruments.) You buy appropriate insurance to protect such assets and the income that these assets generate.

When your main income generating assets moves away from human assets, life insurance (that protects your human assets and its income) becomes less important. But insurance for your financial assets, e.g. business, etc. becomes more important. Life insurance does have a part here to ensure liquidity arising from untimely death and to replace the skills of managing such financial assets.


Part 1 : The conventional idea
Part 2 : The breakaway wisdom: income and assets
Part 3 : Building assets(i)
Part 4 : Assets(i) planning
Part 5 : Further exploration on the principle

Quick takes
1. The principle in a nutshell
2. Definition of assets(i)
3. Classes of assets(i)

Assets(i) planning

We can therefore split assets(i) planning into 2 sections:

1. Career planning
2. Financial planning

Career planning is about finding career satisfaction and building the earning capability of your human assets. You will need financial planning to protect your human assets, i.e. life insurance, at this stage.

Financial planning is about building, managing and protecting your financial assets. For many of us, it is also about the plan to move our income generating pattern away from human assets and toward financial assets.


Part 1 : The conventional idea
Part 2 : The breakaway wisdom: income and assets
Part 3 : Building assets(i)
Part 4 : Assets(i) planning
Part 5 : Further exploration on the principle

Quick takes
1. The principle in a nutshell
2. Definition of assets(i)
3. Classes of assets(i)

Further exploration on the principle

Since it is all about building assets(i) that generate consistent income, does capital gain matter, does buy low sell high matter, then? You ask.

Yes, but...

Yes it does. Capital gain provides you the financial capabality to invest in more assets(i) that generate income. With a capital gain, you have more cash to buy asset(i).

But, the process of wealth building does not stop at mere making a great capital gain. So after a killing in stock market, you are holding $50,000 more cash. Are you going to deplete this newly earned capital? If you keep your $50,000 in cash or place it in unit trusts, it is going to be depleted one day. Your cash or unit trusts will have a hard time chasing after inflation and provides for your old age without depleting the $50,000 itself.

But if you put this money into an asset(i), i.e. real estate (for rental), business (for profit), stock (for dividend), that generates higher return and raises with inflation. You are now creating a consistent stream of income without depleting your $50,000 value.

Ok, unless...

Unless you argue, you will put back the money in stock market going for a bigger kill. You say, "yes, the income is not consistent and I may even suffer losses but I don't depend on this income. I will survive even if I lose all $50,000. So I am willing to take risks for a greater gain. Time is at my side as I am young. My age reduces my risk as I have longer time to wait for investing gain." Sure, then. Go ahead. This is one of the strategy to build assets(i)!

But, ultimately...

But ultimately you will be old one day. Time will not always at your side. Erratic nature of capital gain will not suit your profile anymore. And you will probably depend on the income from your financial assets(i) instead of human assets. Then, put these huge capital gains that you have accumulated through out your youth into asset(i).

You should have realised by now, income generating assets(i) is the key instrument for retirement planning.


Part 1 : The conventional idea
Part 2 : The breakaway wisdom: income and assets
Part 3 : Building assets(i)
Part 4 : Assets(i) planning
Part 5 : Further exploration on the principle

Quick takes
1. The principle in a nutshell
2. Definition of assets(i)
3. Classes of assets(i)

Classes of Assets

Generally there are four classes of assets.
1. Human assets: your skills, knowledge, labour, time, etc.
2. Paper assets: stocks (learn the basics), bonds, mutual funds, options, etc.
3. Real estates, and
4. Businesses

The key to effective assets planning is to find the most effective combination of the four in every stage of your financial life. You must then know
a. the strengths and the weaknesses of each class of asset,
b. how their strengths complement each other's weaknesses, and
c. your financial position in deploying a strategy


Part 1 : The conventional idea
Part 2 : The breakaway wisdom: income and assets
Part 3 : Building assets(i)
Part 4 : Assets(i) planning
Part 5 : Further exploration on the principle

Quick takes
1. The principle in a nutshell
2. Definition of assets(i)
3. Classes of assets(i)

Assets That Generate Income: Assets(i)

Assets(i) vs (common meaning) assets

Let us denote such income generating assets as assets(i) to differentiate it from the common meaning of the word "assets" which includes non income generating items like buying a big house for our own accommodation, etc. This will keep reminding us of the difference.

Set your financial goals in terms of sustainable and recurring periodical income. Maximize the income generating capability of your assets(i). As you grow older the income generating pattern should change. You move away your income generating assets(i) from human assets(i), i.e. your time and labour, to financial assets(i), i.e. businesses, stocks, real estates, etc. You must then remember to protect these assets(i) accordingly.


Part 1 : The conventional idea
Part 2 : The breakaway wisdom: income and assets
Part 3 : Building assets(i)
Part 4 : Assets(i) planning
Part 5 : Further exploration on the principle

Quick takes
1. The principle in a nutshell
2. Definition of assets(i)
3. Classes of assets(i)