Tool Description:

The tool guides you through listing your assets and liabilities to give you a theoretical and actual net worth. The tool goes further to calculate where your net worth should be given your age and income level. This is called the millionaire next door formula.

Refer to the “Emergency funding” section in the Stages to Financial Independence course.

Tool explanation and example from images:

When opening the net worth calculator start listing your fixed assets in cell A9 with their values in B9. This user has a primary residence and a rental property, worth R1,5m and R850 000. If you have a business- or financial assets, list them under A18 and A26, respectively. The user has a hair salon worth R500 000. Column C is only used if an asset does not provide you with a monthly income, like your home or car. This user's primary residence does not produce income and they ticked yes in the dropdown. Tick yes under the dropdown if your asset does not produce income and view your actual net worth in cell I12.

Net worth guideline: Enter your age and annual gross income in cells I22 and I23. This user is 25 year with an annual salary of R300 000. The calculator shows you what your net worth should be given this guideline in cell I24. It will show your net worth quartile in comparison to where it should be.