The final months of 2025 brought a season of change for the Seely family, marked by the unexpected and the unplanned. This has led us to pause and think, regroup, and approach the coming year with a new perspective and a slight change in our previous plans.

I was struck by how many friends faced similar turning points, each event driving profound change in their own lives during those same months, and then a friend pointed out that we were coming to the end of the Year of the Snake.

For those who are unaware of what this means, the Year of the Snake: February 10, 2025 to January 28, 2026, falls within the Chinese Zodiac 12-year lunar calendar. Whether you are a believer or not, when you read that the Year of the Snake is fundamentally a year of profound change, symbolised by the shedding of skin and the conscious release of an old way of being, thinking, or living that no longer serves you, and given the past few months, I have to say the Year of the Snake was spot on.

Now, if you were curious like I was, as of January 29, 2026, we will enter the Year of the Horse, which champions freedom, rapid progress, and strong forward momentum. Sounds like good news all around if you carefully plan and are also a believer in the Chinese Zodiac, to which, I have to be honest, I do find some relatability.

With all that said, focusing on the future with a positive outlook and using the encouraging words from the pursuing Year of the Horse to drive forward momentum, it made me recognise the importance of reviewing our financial net worth and determining what adjustments, if any, needed to be made to ensure any forward momentum would be a financial one.

The fact is, few documents hold as much silent power as the net worth statement. Often overshadowed by the monthly budget or an updated investment statement, this simple balance sheet of your financial life is not merely a snapshot of what you own and owe; it is an accurate picture of your financial wellbeing.

From my perspective, a net worth statement is a moment of profound financial honesty and, as I have said to many people, it is the arithmetic of your choices. By listing all assets; including the cash in bank accounts, pension accounts, investment accounts, and the market value of your home and other property, if any, and then subtracting all liabilities, such as mortgages, car loans, credit card debt, and student loans, you arrive at a single, telling number: your net worth.

This figure, as I previously mentioned, is the ultimate scorecard of your financial health and is far more informative than income alone, because it is the ultimate test of how you truly manage your income. Your salary is just the starting point; this statement reveals what you have done with it. It shows if your earnings are being transformed into lasting assets like savings and investments, or if they are disappearing into debt and expenses.

By listing what you own against what you owe, you get an honest report card on your financial choices, and it moves the focus from what you make to what you keep and grow, proving that effective income management is about building equity, not just covering bills.

For those who have not created a net worth statement previously, I strongly encourage you to take the leap, as it will provide true financial clarity, as opposed to speculating where you currently stand.

Additionally, the insight into your financial health becomes invaluable and often illuminates concentrations of financial risk — perhaps significant exposure to the stock market or to a single asset, which is often the family home. The fact is, a net worth statement establishes a definitive baseline for your financial health, and any movement becomes measurable and tangible.

Once you have developed a net worth statement, the true magic is in the annual ritual of updating. The development of a net worth statement is not a one-time event; it is a living document meant to be updated at least annually over the course of your lifetime.

By updating it annually, it transforms from a static financial point into a time-lapse of your financial journey — I know it sounds cheesy, but it holds true!

Furthermore, this annual update of your net worth statement is a tool for measuring progress against your long-term goals. Are you on track for retirement? Is your wealth growing faster than inflation?

The year-over-year comparison provides the evidence, revealing whether your daily financial habits are effectively serving your lifetime goals.

The reality is the practice of methodically updating your net worth builds financial mindfulness and reinforces positive behaviour. Watching your net worth climb steadily through a combination of debt reduction and asset growth is profoundly motivating, and it turns concepts like saving and investing into a concrete, rewarding story of personal financial growth.

For those who have not created a net worth statement yet or do not see the value in creating one, the sad truth is you are potentially navigating your financial life in the dark.

Without this clear snapshot, you cannot accurately measure your progress or identify silent financial drains on your wealth.

You may feel a false sense of security from a steady income, while high-interest debt quietly erodes your stability, or you might miss how your assets are truly allocated. The fact is, critical decisions about spending, saving, and investing are often based on guesswork and emotion rather than the concrete reality of your complete financial position.

At the end of the day, knowing what your financial health is now — whether it is the good, the bad, or the ugly — is the first step in creating forward financial momentum.

• Carla Seely has 25 years of experience in the international financial services, wealth management, and insurance industries. During her career, she has obtained several investment licences through the Canadian Securities Institute. She holds the ACSI qualification through the Chartered Institute for Securities and Investments (UK), the qualified associate financial planner (QAFP) designation through FP Canada, and the associate in insurance (AINS) designation through The Institutes. She also completed a Master’s Degree in Business and Management through University of Essex

• For further inquiries or suggested topics, e-mail: justaskcarla@outlook.com