Net worth is composed of both your assets and your liabilities. Your assets are everything you own; Your liabilities are everything you owe.
To calculate your net worth, you’ll need to gather information about all of your assets and liabilities. Your assets are everything you own—including your home, savings, investments, and retirement accounts—minus any debts or other obligations you may have. Your liabilities, on the other hand, are everything you owe—including your mortgage, credit cards, student loans, and other debts.
To get started, make a list of all your assets and their estimated value. Then, make a list of all your liabilities and their estimated value. Finally, subtract your total liabilities from your total assets to calculate your net worth.
Keep in mind that your net worth is just a snapshot in time and can fluctuate depending on the markets and your personal financial situation. However, tracking your net worth over time can give you a good sense of whether you’re on track to reach your financial goals.
If you need help calculating your net worth, there are many online calculators and templates that can assist you. You can also talk to a financial advisor for help understanding and interpreting your results.