How To Calculate Your Net Worth

How can I calculate my net worth?

You can easily calculate your net worth. When you hear net worth, you think, "It seems kind of sophisticated, complex. What does that mean?" Net worth is really simple. It is taking a look at what you own, meaning your assets - your house, your car, your IRA, your 401Ks - coming up with how much that total value, and comparing it against how much you owe - your credit cards, your auto loan, your mortgage - whatever it is. Your net worth is taking a look at what you owe versus what you own.