How to Calculate Your Net Worth If you want to know how financially healthy you are, one of the most important numbers to look at is your net worth. Your net worth is the difference between your assets and your liabilities. It tells you how much wealth you have accumulated over time, and how well you are managing your money. But how do you calculate your net worth? It's not as complicated as it sounds. Here are the basic steps to follow: 1. List your assets. Your assets are anything that you own that has value, such as cash, bank accounts, investments, retirement accounts, real estate, vehicles, jewelry, art, etc. You can use online tools or apps to help you track your assets, or simply make a spreadsheet or a list on paper. To get the most accurate picture of your net worth, you should use the current market value of your assets, not the original cost or the sentimental value. 2. List your liabilities. Your liabilities are anything that you owe money on, such as mortgages, car loans, student loans, credit cards, medical bills, taxes, etc. Again, you can use online tools or apps to help you track your liabilities, or simply make a spreadsheet or a list on paper. To get the most accurate picture of your net worth, you should use the current balance of your liabilities, not the original amount or the minimum payment. 3. Subtract your liabilities from your assets. This is the simple formula to calculate your net worth: Assets - Liabilities = Net Worth. For example, if you have $100,000 in assets and $50,000 in liabilities, your net worth is $50,000. Also you can check some famous celebrities net worth on networthandage. If you have $50,000 in assets and $100,000 in liabilities, your net worth is -$50,000. 4. Review and update your net worth regularly. Your net worth is not a static number; it changes over time as your assets and liabilities fluctuate. Therefore, it's important to review and update your net worth regularly, at least once a year or more often if you have significant changes in your financial situation. This will help you track your progress towards your financial goals, and identify areas where you can improve your money management. Calculating your net worth is a simple but powerful way to measure your financial health. By knowing where you stand financially, you can make smarter decisions about saving, investing, spending, and debt repayment. Remember that your net worth is not a reflection of your self-worth; it's just a tool to help you achieve your financial dreams.