How To Calculate Your Net Worth
List all your assets: Cash, investments, real estate, vehicles, and valuable possessions.
Calculate liabilities: Mortgages, loans, credit card debts, and outstanding bills.
Subtract liabilities from assets to determine net worth.
Differentiate liquid and illiquid assets: Easily converted to cash or take time to convert.
Include retirement accounts: 401(k), IRAs, pension plans, etc.
Consider insurance policies: Cash value of life insurance or investment-based insurance.
Account for business ownership: Include the estimated value of your stake.
Update regularly to reflect changes in your financial situation.
Seek professional help for complex assets or financial circumstances.
Track net worth over time to assess financial growth and plan accordingly.
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