How to Quickly Calculate Net Worth

One of the first steps to mastering personal finance is to benchmark where you are currently at. The best ways to do this is by calculating net worth. If calculating your net worth sounds complicated, don't worry. It's really simple as long as you have the correct paperwork and financial information. And it will help you go from just an average net worth to a high net worth.

Difficulty: Easy

Instructions

1. List all of your assets on a piece of paper or spreadsheet. An asset is anything that you can sell for money as well as the value of savings accounts, checking accounts, retirement accounts, investment accounts, CDs, and bonds. Make sure to include your homes, cars, boats, collectibles, furs and other items you would normally not think of as an asset.

2. List all of your debts, or things which you owe money for. These may include: homes, cars, credit cards, personal loans, student loans. Note that you will only list the amount you still owe for these items not the original cost or loan amount.

3. Subtract all of your debts from your assets and that is your net worth.

Tips & Warnings

• If your net worth is negative, you're not alone. Work on building assets and getting rid of liabilities (debt).
• You can also find many online net worth calculators which are very helpful and accurate.

Resources

• Bankrate.com Net Worth Calculator