What Is Net Worth In Personal Finance (SALN)?

Why knowing your net worth is important?

What is SALN?
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An individual's net worth or Statement of Assets, Liabilities, and Net worth (SALN) is simply the value that is left after subtracting liabilities from assets. Examples of liabilities (debt) include mortgages, credit card balances, student loans, and car loans. ​

Sample Statement of Net Worth for James and Anne.

An individual's assets include checking and savings account balances, the value of securities (e.g., stocks or bonds), real property value, the market value of an automobile, et al. In other words, whatever is left after selling all assets and paying off personal debt is the net worth. Note that the value of personal net worth includes the current market value of assets and the current debt cost.

Again, the formula is pretty easy to compute right? Get the value of all stuff (Assets) you own minus all your debts. That's it!

​By stuff, I mean your house and other properties and paper assets—which include stocks, mutual funds, and bonds.

Money Is Just A Tool
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​If somewhere in your brain you think that money is evil, that it is unspiritual to earn money, then somehow, even subconsciously, you will find ways of avoiding money. But the Bible doesn't say that money is evil; the love of money is (Read 1 Timothy 6:10). Money is a neutral thing that can be used to love or hate, to build or destroy, depending on how you use it.

Purify your thinking towards money by embracing the truth that God wants you to have some material things to live a humane life, enough for your needs.

2 Things You Can Do So To Ensure That You Master Your Money
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If you are diligent to apply just these two things first, you will be on your journey to take charge of your finances.

First, Acknowledge That God Owns Your Money
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Hey, not just your money; your time, your family, all your material possessions, education, and even your future income, God owns. He owns everything! So if you haven't transferred ownership yet of your money to God the sooner you do it, the better your management of all your resources will be.​

Lastly, Remember You Are The Commander, Tell Your Money Where To Go
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So first know where your money is going. You do not allow it to wander just anywhere. Ecclesiastes 5:10 says, "He who loves money will not be satisfied with money, nor he who loves wealth with his income; this also is vanity."

A Gift For You!
​You can download my free Personal Statement of Net Worth template here.