Net Worth

Definition

Your total monetary value accounts for the money you have, your possessions, and your debt.

Net Worth = Total Assets - Total Liabilities

Example

Assets:

• Cash: $500,000
• Car: $20,000
• Watch: $1,000
• House: $200,000
• Total: $721,000

Liabilities:

• Loan: $100,000
• Utility Bill: $5,000
• Total: $105,000

Net Worth Calculation: $721,000 -$105,000 = $616,000