Personal Financial Year-End Tabulation

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Personal Financial Year-End Tabulation

Written November 2013 by Marie DeLauretis

It’s time for a Personal Financial Year End Tabulation!

Every year, members of our firm like to do what is called a Personal Financial Year End Tabulation. Described another way, we like to calculate how we have done so far this year with respect to our individual financial situation. One tool that we often use not only for ourselves, but for our clients to help them determine their current financial position is the Net Worth Statement – also known as the Balance Sheet, as per your accountant.

The Net Worth Statement is a simple financial document that lists all your assets such as:

  • Your home
  • Recreational/second properties
  • RRSP, TFSA, Non-registered investments, banking accounts, cash values within life insurance policies
  • Cars
  • Real estate
  • Monetarily valuable collectible etc.

It subtracts all your liabilities such as:

  • Mortgages
  • Lines of credits
  • Home equity loans
  • Credit cards
  • Student loans
  • HBP/LLLP balances
  • and other personal loans etc.

After subtracting the liabilities from your assets, your end result is called your Net Worth.

While it can be debated as to what should and should not be included in the net worth statement, as a general rule, only include items that you would expect to convert to cash, or that you are investing in for the intent of profit or sale in the future. I avoid including items of sentimental value, as I would not want to convert these to cash. I also do not include furniture or personal effects. By all means, if you are a collector of unique stamps, valuable antiques or jewelry, distinguished wines, include them as assets. Just be realistic of their value, lean toward conservative values and do not forget to properly depreciate any of those depreciated assets (such as vehicles) that you may want to include.

Your net worth statement will provide you with a financial snapshot of where you stand financially at year end. By completing this valuable exercise year after year, you will be able to track your progress, and determine if you are closer to achieving your personal financial goals you have set.

If you want to see what a net worth statement spreadsheet looks like, please feel free to contact me by phone at 403-670-8849 or by email at inquiries@delauretis.com.