Net Worth Calculator: Assets - Liabilities = Net Worth
Next Steps To Improve Your Net Worth:
1
Build a Budget
Take control of your money by writing out what you earn and what you spend. Determine your monthly cash flow. Live within your means.
2
Trim Expenses/Liabilities
Remove what you don’t need. Pay down high-interest debt. Ask yourself – will this improve my net worth?
3
Increase Income, Savings, and Investments.
As Cash Flow increases, you’ll be able to increase savings accounts and investments, acquire assets, and pay down debt. The more options you’ll have, your net worth will increase.
Want to learn more?
What Are Assets?
Assets are valuable possessions that you own. This includes things like cash, retirement/ investment accounts, vehicles, and your house.
What Are Liabilities?
A liability is what you owe. In the case of net worth, we’re talking about your financial debts. Mortgage, car payment, credit card debt, student loans, and medical debt are all liabilities.
How Is Net Worth Calculated?
What you Own (Assets) – What you Owe (Liabilities). Fill in all the fields above to determine your Net Worth!
How Can Something Be an Asset and a Liability?
This is most common with houses and cars. You own a house (asset), but the house comes with a mortgage (liability). You have a car (asset), but it has a loan (liability). Hopefully there is a positive difference (equity) between the value of your asset and liability to positively affect your Net Worth!