How to Find Your Net Worth

Net wort, means adding what you own and subtracting what you owe from your combined assets. The results are your net worth. To figure net worth we begin by accounting for all the liquid assets we have such as cash on hand, balances in checking accounts and money you may have in other places. Next, add in the cash value of life insurance policies if you were to cash them in. This is also true for annuities along with the value of 401(k)plans and Keogh. You must put a present-day value on pension and profit-sharing plans.

You should get the current value of your home by judging the price of like homes in the area. Usually, your home is the largest asset in your portfolio. The value of stocks, bonds and mutual funds can be found on recent financial statements as well. You can get the value of your car, boat and motor cycle by checking with dealers and dealer associations, such as the National Automobile Dealers Association. In figuring the value of household furnishings and appliances, it is best to use a conservative approach. It is customary to take 20%-30% off the estimated market value of collectibles like antiques, furs, jewelry stamps and coins.

Figuring your net worth can be intimidating, but you can start small with current bills. Next, list the current balance on all credit cards accounts and installment accounts. List balances on your home and car, which are likely your largest liabilities. List everything owed because this will ultimately reduce your net worth. Now calculate the anticipated amount of money you would receive for your belongings and investments, subtract your debt, and you will know your estimated net worth.