Considerations in Calculating Net Worth

Net worth, the ultimate financial metric

Net worth is a metric that takes all of your complex financial information and presents it to you in one number that sums up your entire financial life. Whether your net worth is positive or negative, there is room for progress. Here is how to calculate your net worth.

Calculating net worth is a simple equation of total assets minus total debts.

What is an asset?

Anything that you own, whether tangible or intangible, that is cash or can be traded for cash value:

• home value
• money in your checking, savings, money market, retirement and investment accounts

What is a debt?

An obligation that you owe to another person or entity:

• mortgage(s)
• credit card(s)
• student loans
• lines of credit
• personal loans
• loans from family or friends
• Do not include vehicles since they are depreciating assets.

Calculate your net worth today! It is important to remember that while reaching a positive net worth is the goal, any increase in your net worth is a good thing.