How do you calculate personal net worth?

^{How do you calculate personal net worth?}

^{This is a very common concept. It is the total assets minus the total liabilities.}

^{This is a purely financial calculation. It has no direct relationship to income.}

^{It's just a snapshot of one's financial status at a given time. In general, the most interesting time is now.}

^{For its value, I think "net worth" is an inappropriate phrase, but many would say it. I like what “pure money” means.}

It is worth remembering that the net worth of most people is less than zero.

^{The net worth of an individual can be calculated on the basis of assets and liabilities at a particular time such as drawing the net worth of a company.}

^{If you want more detailed information on how to calculate your net worth, you can visit}

^{Gather the following information:}

^{Real Estate Ownership Documents.}

^{Current registered and unregistered investment details}

^{Current prices on •treamers and automobiles}

^{Bank Account Statement}

^{All mortgage details}

^{Credit card details}

^{Student, automobile, bank loan, credit line and personal loan details}

^{Life insurance details}

^{Once you have all your information, you can start calculating your net worth by starting with a list of all your assets, whatever value they add to your net worth.}

^{List direct assets}

^{Now that you have all the information you need, it's time to really search for it. First: Direct assets.}

^{Direct assets are valuable objects with physical properties. In other words, these are assets you can touch. List all direct assets and assign dollar values:}

^Residence

^{Holiday home}

^{Rental property}

^{Investment real estate}

^Furniture

^Cars

^{Sports or used vehicles}

^{Recreational equipment such as boats, ice machines or RVs}

^Art

^Jewelry

^{An add dollar value to all of these items to find your total direct assets.}

^{List equity assets:-}

^{Equity assets are your ownership interests in businesses, including shares in retirement accounts.}

^{List all equity assets and assign dollar values:}

^Stock

^{Variable anniversaries}

^{Limited partnership}

^{Business interests}

^{Retirement account such as • 401 (k) or IRA}

^{Add the dollar values of all the items to find your total equity assets.}

^{List fixed income attributes}

^{Next, you need to list your fixed income assets. Your fixed income assets are long-term investments that pay interest over a fixed period of time.}

^{Fixed income assets may include:}

^{Municipal bonds}

^{Corporate bond}

^{Bond Mutual Funds}

^{Add the dollar values of all the items you own in this category to find your total fixed-income assets.}

^{List cash and cash equivalents}

^{Cash equivalents refer to short-term accounts and redeemable investments for emergencies.}

^{Include total cash in your checking and savings accounts, as well as all other easily liquidated money market funds.}

^{Specific features in this category:}

^{Checking account balance}

^{Savings Account Balance}

^{Money market mutual fund balances}

^{Certification of deposit}

^{Other cash reserves}

^{Add their dollar values to find the total cash and cash equivalents of these items.}

^{Once you have listed all your assets, it is time to summarize your total assets. To identify your total assets, add the sum of each asset category:}

^{Accountable assets}

^{Equity assets}

^{Fixed income assets}

^{Cash or cash equivalent}

^{Other assets}

^{List your responsibilities}

^{Next, it's time to list your responsibilities. Liability is money owed by a person or business that devalues its net worth.}

^{Responsibilities include:}

^{Home mortgage}

^{Other mortgages such as vacation property or rental property.}

^{Home equity line of credit}

^{Home equity loan}

^{Auto loan}

^{Bank loan}

^{Student loan}

^{Personal credit line balance}

^{Credit card balance}

^{Personal loan}

^{Other loans or money you owe.}

^{Then apply the asset-liability principle, and you will get your net worth.}