How to Calculate Your Net Worth

Calculating your net worth requires financial information such as things you own and the debt you owe. Calculating your net worth can be useful to measure your financial progress throughout the year. What is your net worth? Your net worth is the total of all your assets minus your liabilities. You should use your net worth to track your progress for improvement.

Difficulty: Easy

Instructions

1. Begin by listing your largest assets. This would include homes and vehicles.

2. Gather all your latest statements of your liquid assets. This includes checking and savings accounts, cash, CDs and retirement accounts.

3. Catalog all personal items worth $500 or more that may be of value such as coin collections, jewelry, and antiques.

4. Take all the assets listed in the above steps and add them together. This number represents your total assets.

5. List all your liabilities such as credit cards, loans, mortgages, and debt.

6. Add up all your liabilities for a total

7. Subtract your liabilities from the total assets and you will have your net worth.

8. Repeat the process in a year and compare.

[philamena]

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[amylaine]

on 5/6/2008 great info.

[GreenGardenChic]

on 5/6/2008 Good to know.