Have you ever had anyone ask you where your net worth is? I highly doubt it, but it is an incredibly important question! First of all, what is net worth anyway? And why should you be concerned with what makes up your net worth number? These are great questions and will all be addressed in this post!
How to Calculate Your Net Worth
This term is often thrown around, but very few people can actually tell you what their net worth is. Basically, your net worth is the total value of everything you own minus the debts you need to pay. Here is an example to show you how to calculate your net worth:
House – value of $175,000 Car #1 – value of $20,000 Car #2 – value of $10,000 401k – value of $20,000 Total Assets = $225,000
Mortgage – $160,000 Car #1 – $15,000 Student . . . → Read More: Where Is Your Net Worth?