Manila, Philippines

Create Your Personal Net Worth Statement (SALN)

personal SALN
Sharing is caring:

Here’s a sorta-poem I wrote:

Tracking your investments and regularly saving, is a good thing.
Tracking your loans and paying credit to the letter, keeping them at bay is better.
Tracking your net worth is best, and if you do, you get to do the first two, too.

Change in Approach

I used to track my savings and investments monthly. If you also do, you’re a step towards financial maturity. Let’s advance a few more steps here.

Then I figured this does not give me the complete picture since there are times when my savings dwindle, either due to unforeseen or excessive expenses (which is bad), or when I make major purchases on real assets (which is ok). Say home renovation or purchase of insurance or debt repayment. Less cash and savings on hand do not necessarily mean a worse financial standing.

So I decided to track my personal net worth instead.

Simply put, net worth is how much will be left to you once all you’re your assets have been sold off and all your liabilities have been settled. It’s like when you file for bankruptcy and get liquidated (hopefully not). This is also what our top businessmen and government officials disclose. So at least we know where we stand compared to them. Asa. Asa talaga.

Nothing too serious and complicated really, anyway it’s your personal net worth for your personal use and self-awareness-self-confidence. My approach is conservative as well as I don’t want to pad and sandbag my net worth statement, since I don’t want to feel richer than I really am. Grin. XD


Here’s a video preview:


You don’t need to be an accountant to grasp this. Simply put, Assets (A) are how much you own. Liabilities (L) are how much you owe. And Net Worth (NW) also known as Equity (E) is how much of what you own came from your own money. In formula lingo, A = L + E (NW). Everything you own must have come from your own money or from borrowing. Where else right?

Sharing my personal template below. Note, numbers presented here are fictional, aspirational even and for illustrations purposes only. Personally, I prefer not to be scientific about it so I don’t include the money in my wallet and I don’t need to account for everything up to the last Php. Rounding down to nearest hundreds works for me. Just the major items.

Let’s break it down. Pick a certain cutoff, say end of Sep2013. Then list down your vast riches as of that date.

What You Own

Assets will include liquid cash (balance of savings and current account and emergency funds, I prefer to exclude my payroll account since I don’t keep my savings there), long-term deposits (maturity value of time deposits, SDA’s etc), investments (selling value of stocks, UITF, etc).  Receivables are any significant portion that you own and will receive in a year’s time, like loan repayment from a friend, or refund etc. I personally prefer not to include future income, bonuses and retirement fund here since I don’t own them yet. Value of your businesses as well, if you have. For mine, I included affiliate marketing and online income as part of my businesses too, which is true.

I also included real assets such as property (recent appraised value of the house and market value of my car). These real assets should be depreciated monthly, like for a brand new car expected life is 5 years while for homes, I used 6% annual depreciation which I computed from the appraisal report when I took a home loan.

I also included my life insurance sum assured in the picture (assuming you’re already covered). Why? Well because it makes me feel rich even if I’ll only realize the value (or rather my beneficiaries) when I’m gone. Seriously. And besides, I own it and I am charging my liabilities side with insurance payables (limited term 10-years to save). Since I need it to be balanced, an entry in liabilities side should have a corresponding entry in assets and/or equities side. So I chose both. Up to you really. As for the fund value of these unit-linked insurance policies, they go to my assets too. As for my auto and home insurance, I no longer count these as assets since they protect the values of my car and home, which are the real assets that I accounted for. I just include them in my liabilities side to be more conservative.


What You Owe

All your loans (includes OB of home loan, personal loan and auto loan), credit card outstanding balances. I also included how much premium payments I still need to make for my 10-year insurance policies, and the annual auto and mortgage insurances. Other monthly bills that I have to pay. You may also put here your monthly household expenses, or at least your budget for it. I don’t put mine since my mom takes care of the budgeting. And besides, I want this to be a snapshot of my net worth, and not a cash flow statement of our household haha!


My Net Worth

Total assets less total liabilities. Hopefully you arrive at a positive number. I monitor at least two figures: Net worth which includes insurance sum assured (A) and life insurance payables (L); and net net worth which excludes life insurance sum assured (A) and life insurance payables (L). The latter is what I track more closely and set my annual targets for.

That Nice Feeling

It really feels nice when I update my file (monthly), I get to see my assets increase (in spite of depreciation charges) and my loan payables reduced. Even if there’s no significant increase in cash held, at least I know that my hard-earned money was put into real assets, debt-reduction, which also increase my net worth. Or in times when I was not able to save at all due to necessary and overwhelming debt payments, it gives me the feeling that my net worth still improved.

More than the mathematical side of it, for me this experience and discipline of tracking provides a healthy psychological boost towards money and personal wealth management. Helps in strategizing and decision-making on how to spend as well.

Time to do yours!

Found this article helpful? Share with a friend and bless him with new insights. Follow us on Facebook, Instagram and Twitter. Subscribe to our growing mailing list for free!


Join me in Truly Rich Club and see for yourself the many financial (stocks investments) and spiritual investments that I enjoy. Support our cause, donate via Paypal.


 Filipino Personal Finance Investments For Filipinos

5 Responses

  1. 2018 Investment Strategies (and FarmOn Hot Pepper Harvest) – Investment Juan-01 says:

    […] has been very generous to us this 2017, granting us 52% growth in current net worth and 22% growth in living net worth. I hope yours grew much faster. (Click here to learn how to […]

  2. AppleLorraine says:

    For the Lending Business, does this include the interest or only the capital?

  3. Geri says:

    Good question Apple. The more accurate way to account for it is to track your receivables- both lending capital out there and unpaid interest. Banks do the same. To be technical about it, for loans that are updated and up to 89 days past due date, both capital and interest are still accounted. If the loan is 90 days past due date, the proper way is to no longer account for interest earnings beyond 90 days. But capital is still part of your receivables. At 180 days past due, both unpaid capital and interest are no longer accounted for. This is called write off in banking terms. This forms part of your loans losses.

    Might be too complicated for personal use so you might want to use something simpler. But the point is realistic accounting of your loan portfolio and the potential losses at various past due stages. Hope this helps!

  4. Geri says:

    Hi Grace Neighbor, good question. I'm not an accounting expert, just have 6 units of it. The more conservative approach for me is to add how much you've paid for already (as down payment) as part of your assets. Should result in increased net worth since it has no corresponding liabilities yet.

    Or if the unit has been turned over to you, then the more correct way is to count the TCP as assets (like Condo Value), then your mortgage loan as part of liabilities. The difference should mathematically lead to increase your equities = down payments you made.

    Hope this helps and see you there! Can't wait!

  5. Grace Neighbor says:

    Hi Pen,

    This post is great. Been following your blog for a while. I note that you have some posts on getting a unit at SMDC Grace Residences, and I also note that figures in the SALN above are just fictional or even “aspirational”.

    Now, just want to tie up the two together. How do you try to account for a condo unit you're paying for in the SALN? Just curious. 🙂

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Do NOT follow this link or you will be banned from the site!