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Balance Sheet & Net Worth Statements 

Need help understanding and managing your finances? Our experts will help you get your balance sheet and net worth in check.


An individual can create their personal balance sheet to determine their net worth. Calculating an individual’s net worth can help when measuring financial growth over time. 


A personal balance sheet will differentiate their financial assets and liabilities. The difference between the two is the net worth of an individual. 


Individuals can set goals and actively make changes to start growing their net worth. Financial advisors at The Kelley Financial Group can help one determine their net worth by using a balance sheet. Moreover, advisors can continuously review their clients’ net worth to keep track of progress and watch for rising trends.

What Documents Does an Individual Need to Create a Balance Sheet and Determine Net Worth?

An individual will need to obtain accurate financial information to calculate an accurate net worth. A financial advisor will ask a client to provide their financial statements and documents. The documents can include bank statements, investments reports, loan documents, and any information relating to assets and liabilities.


If someone is not sure of their property value, they can speak with an expert to get it formally appraised. After the advisor has all pertinent financial information, they will be able to create a balance sheet statement for the client. Making a mistake while creating a balance sheet would affect the overall net worth statement. This is why clients can get help from The Kelley Financial Group’s advisors to make sure they get an accurate net worth figure.


The Kelley Financial Group has years of experience in guiding businesses and individuals through complex financial matters.

Financial Assets

Financial assets are a mixture of cash equivalents, investments, and personal properties. Anything that has financial value is an asset. A financial advisor can ensure all categories of financial assets are covered on a balance sheet. They can include but are not limited to the following:


  • Cash and Cash Equivalent: This is money one can easily access. They include cash on hand, savings accounts, life insurance cash values, and money market accounts.

  • Investments: These are the current value of an individual’s assets. Examples include mutual funds, certificates of deposit, bonds, and stocks.

  • Personal Property: It's the potential sale value of an asset. They include cars, houses, jewelry, appliances, collectibles, and clothing.

  • Retirement Account: Any amount one has in their retirement account would be included in their financial assets. Examples include IRAs and 401ks etc.

Financial Liabilities

Liabilities are the amount of money an individual owes to creditors, lenders, or any other entity. Basically, it’s the money going out to facilitate an individual’s expenditure. Examples of financial liabilities include:


  • Home equity loan

  • Student loan

  • Car loan

  • Unsecured personal loans

  • Mortgage 

  • Unpaid taxes

  • Credit balances 

  • Unpaid medical expenses 


When a financial advisor sums up all this, they can get the financial liability of an individual. As one starts to pay out these amounts, they typically reduce their overall liabilities and increase their net worth, even if their total assets remain constant.

Calculating Net Worth

The difference between an individual’s financial assets and liabilities is their net worth. Its formula is:


  • (Sum of total financial assets) - (Sum of total financial liabilities) = Net Worth 


The net worth can either be positive or negative. If an individual has a large mortgage and student loans, it can make a decent financial outlook seem mathematically bleak. 

Proficient Financial Experts Help Grow One’s Net Worth

The advisors with The Kelley Financial Group can help clients determine their current net worth by creating a balance sheet or a net worth statement and from there, devise means to help them grow their net worth. Contact The Kelley Financial Group for further assistance.


This material was prepared for The Kelley Financial Group’s use.


The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.


 To determine which strategies or investments may be suitable for you, consult the appropriate qualified professional prior to making a decision.

Building Your Financial Future

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