Your net worth is the total value of your assets minus the total of your liabilities. Your assets are everything you own and can use to pay your debts. Your liabilities are everything you owe. To calculate your net worth, simply subtract your total liabilities from your total assets. This will give you your net worth.
For example, let’s say you own a home worth $200,000, a car worth $15,000, and have $10,000 in the bank. You also have a mortgage on your home for $180,000 and a car loan for $13,000. Your total assets are $205,000 and your total liabilities are $193,000. This means your net worth is $12,000.
If you want to get an accurate picture of your net worth, be sure to include all of your assets, including any investments, retirement accounts, and personal property. You should also include all of your liabilities, including credit card debt, student loans, and any other outstanding debts.