How to Calculate Your Net Worth

By eHow Personal Finance Editor

Rate: (14 Ratings)

Calculating your net worth can be very easy, provided all of the necessary information is readily available. Doing this will help you when deciding whether to make major purchases.

Instructions

Difficulty: Moderately Easy

Things You’ll Need:

Step1
List all of your fixed assets, such as real estate and cars, at their current value.
Step2
List all of your liquid assets: cash, certificates of deposit, stocks, bonds and bank accounts.
Step3
List all jewelry, furniture and household items at their current value.
Step4
Add together all of the above. These are your total assets.
Step5
Subtract all of your debts, such as your mortgage, car loan and credit card balances, from your total assets. The result is your net worth.
Step6
Reevaluate and update your net worth calculations on an annual basis.

Tips & Warnings

  • Be realistic when evaluating the current value of your assets. Such information can be useful in determining whether you are adequately insured. Share the information with your insurance company to help you decide.
  • It is advisable to use the after-tax value of your marketable securities (stocks and bonds) when calculating their value.

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eHow Article:  How to Calculate Your Net Worth

eHow Personal Finance Editor

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