Calculating Your Net Worth

Calculating Your Net Worth

What is your Net Worth? It’s a handy number to know. Many people agree that (in today’s dollars as of 2023) the average couple will need 1.3 Million dollars (that’s $1,300,000) to retire comfortably. Are you on track?

Find out by calculating your Net Worth today. Then, on an annual basis, recalculate and add to a (digital?) sheet of paper to see if you are progressing or regressing. This doesn’t have to take a lot of time.

Total of Assets – Total of Liabilities = Net Worth

Everything you own. The current value of your home, cars, savings accounts, checking accounts, retirement accounts, valuables, etc. You can skip things like groceries and the like. But definitely include any businesses that you may own.

Everything you owe. You should include your mortgage(s), car payments, credit cards, borrowing from retirement accounts, etc. If you owe someone or something, it’s a liability.

Assets minus Liabilities will be a number. That number is your Net Worth.

Don’t get too excited or too discouraged. When I started this back in 2010 my Net Worth was a significantly large negative number. But with focus and creativity, you can turn things around if, like me, you were starting in a hole.

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Take the next step and begin planning your Net Worth.