How to calculate your net worth.
Here’s how to calculate your net worth.
Take values of your biggest assets:
The CURRENT market value of your house, or houses, or apartment if you own the apartment (like in New York City). If you rent an apartment this will be zero.
The CURRENT market value of all your cars, motorcycles, ATVs, motorhomes, and similar items even if you have not paid off the loan yet. We will count the loans below.
The value of all your bank accounts and investments including retirement accounts. This would include stocks, bonds, mutual funds, and similar things.
The CURRENT value of any cryptocurrency assets you own. Even if you paid more for the crypto than it is worth today, you will still have a positive VALUE though you will not have a profit.
The value of any significant assets like precious metals, art.
Take the value of all your liabilities:
The mortgage balance on your house. Renters can ignore this unless they actually own the apartment. (This is uncommon in most areas of the US.)
Any loan balances on all vehicles.
Any loan balances for student loans.
Any other loan balances.
Credit card balances if you do not pay them off each month.
Take the total of your assets, minus the total of your liabilities, that’s your Net Worth. A positive net worth is better. It’s very common for people with student loans to have a negative net worth because they haven’t bought a house which would give them an asset in the form of capital.