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What Is Net Worth? Here’s How to Find Yours

May 4, 2017
Managing Money, Personal Finance
What's Your Net Worth?

Net worth isn’t just a seven-figure number representing a celebrity’s wealth, or an even larger number measuring a company’s balance sheet. Everyone has a net worth, and calculating yours can be a step toward assessing your financial health.

What is net worth?

The formal definition of net worth is the combined value of your assets, or the things you own that have monetary value, minus the value of your liabilities — the accounts or loans that you’re paying off.

Assets that count toward your net worth tend to be liquid assets: the money in your checking and savings accounts, your retirement accounts, life insurance and any other investments you’ve made. Some fixed assets can count too, but it depends on whether or not you can or would sell them if you needed to. Liabilities are a bit easier to classify — any money you owe to another person or entity falls under this category.

Calculate your net worth

This calculator will subtract the value of the assets you enter from the value of your liabilities.

Put your net worth to work

Now that you have some idea of where you’re at, you can set priorities for managing your money. If your liabilities far overwhelm your assets, you may want to look into some options for debt relief.

If your net worth isn’t as high as you like, don’t be discouraged. It’s just one number in a larger picture of your financial health.

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