how to calculate your net worth?

You can calculate your net worth by simply taking the things that you own — (aka assets) — and subtracting the things that you owe, (aka liabilities).

• If the number is negative, it means you owe more than you own.

• If the number is positive, you own more than you owe.

The first thing you need to do is to understand and identify your assets and liabilities.

Step 1.

Make a list of the things you own, your assets

See below an example of a person with a total assets of 1 000 000

• Cash: savings and checking accounts – 50 000

• Retirement accounts and other investments – 350 000

• Real estate: home equity and rental properties – 500 000

• Vehicles: cars, trucks, and boats – 85 000

• Anything else of monetary value (a business) – 15 000

Step 2.

Make a list of what you owe, your liabilities

See below an example of a person with a total liability of 450 000

• Credit cards – 25 000

• Student loans – 50 000

• Mortgages – 300 000

• Car loans – 30 000

• Medical bills – 45 000

Step 3.

Subtract Your Liabilities From Your Assets to get your net Worth number.

As per the example above

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