Do You Know Your Net Worth?
The term "net worth" likely makes you think of celebrities and other a-listers. But in reality, your net worth is simply your assets minus your liabilities (debt), and it's a crucial financial number to know. Knowing your net worth lets you understand your current financial situation, and offers a reference point for measuring financial progress and tracking goals.
To calculate your net worth, estimate the value of the following assets:
-Money in your bank accounts
-Value of your investment accounts
-Worth of your car
-The market value of your home
-Any business interests or assets
-Cash value of your personal property such as musical instruments, art, furniture and jewelry, antiques.
-Cash value of any insurance policies
Now, tally up those numbers. Once you have that, list your liabilities, i.e., what you owe. Consider the following:
-Credit card debt
Add those numbers up, deduct your total liabilities from your total assets, and voila! Your net worth.