How to Calculate My Worth
- 1). Add up all the cash and cash equivalent assets you have in all your bank accounts on a piece of paper or using a spreadsheet program. These assets include money in your checking and savings accounts, and certificates of deposit.. List that total under a "Cash and Cash Equivalent" category.
- 2). List your investments in one of two subcategories: "Short-Term Investments" and "Long-term Investments." Short-term investments are anything that is relatively liquid and may include stocks, Treasury notes and bonds close to maturity. Long-term investments are assets that are a little harder to move, such as owned rental property, Treasury bills, retirement accounts, or other assets that may be harder to convert into cash.
- 3). Check the value of your large personal assets such as your primary residence or your vehicles. Consult a real estate appraiser to figure out the value of your home and a real estate agent to see how many comparable homes were sold around your area. According to a CNNMoney article from July 2009 titled, "Buying? Selling? Don't Undervalue the Home," recent property sales around your home have a significant effect on the valuation of your house. Also, take your car to a local dealership or used car sales lot to get the value of your vehicle.
- 4). Add up any miscellaneous possessions you may have as well. This may include things such as expensive jewelry, collector's items or consumer electronics. Don't waste your time adding everything up for your "Miscellaneous Items" category, but do factor in valuable items that could be sold with relative ease.
- 5). Add totals of all these categories under your "Assets" column. This number tells you the dollar value of everything you own and how much you would be worth if you did not have any debt or liabilities.
- 6). Gather up the current information for all your debt. Organize these items under your "Liabilities" column. This may include your mortgage, student loans, credit card debt, car payments or other personal loans. This total dollar amount will tell you how much money you owe.
- 7). Subtract your liabilities from your assets to find out your net worth. If the number is positive, it means you own more in assets than you owe in debt. The reverse is true if the number is negative.
- 8). Use your net worth to help you build on your personal finance strategy. Repeat this exercise at least every six months to see if you're on the right track. It doesn't matter whether you currently have a negative or positive net worth as long as you see improvements each time you calculate your net worth.
