How to Calculate personal Financial Net Worth

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By Wasatch
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Calculate personal Financial Net Worth

It is very simple to determine your net worth. Follow these simple steps.

Difficulty: Easy

Instructions

Step 1

First make a column and list all assets. These are things you own. Forget loans against them for now. Start with your house. This is not the equity in your home, it is what you think it would reasonably sell for. I have an article that can help you determine equity as well.
Step 2

After you have the price you think your home would sell for list the book value of your cars. Not what you owe again only what it will sell for. List also your other vehicles, boat, motor home, trailer, and so forth. List any jewelery that has value of more than $100.00. Watches. Remember high tech items like Camera, Computer, Video recorder. List household furniture. On furniture list what it would bring at a yard sale or in a local newspaper classified add. List any antiques or paintings with good value.
Step 3

List any balance in a checking or savings account at your bank. List your retirement account, your IRA account, savings bonds, mutual funds, stocks, bonds and so forth.
Step 4

Now list liabilities in another column. You total mortgage. Not the monthly payment but the entire balance if paid in full. This will be on your monthly mortgage statement. List any car loans. List Student Loan balances. List Credit card balances. Any misc. debts.
Step 5

Subtract your loan amounts from your holdings and assets. All you own minus all you owe. The total is your net worth. Hopefully it is a positive number.

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