What Is Included In Your Net Worth

Alright, grab your coffee—or your tea, I don’t judge. Let’s talk about something that sounds way more boring than it actually is: your net worth. Spoiler alert: it’s not just for billionaires or people who wear suits to brunch.

What The Heck Is Net Worth, Anyway?

Think of it as your financial report card. Net worth is simply everything you own minus everything you owe. That’s it. No secret math, no hidden fees, just a big, honest number.

Own a house? That’s a plus. Owe money on a credit card? That’s a minus. Your net worth is the final score. It’s like your bank account’s hot-or-not rating, but way more revealing.

Your Assets: The “Good Stuff” List

Your assets are all the shiny things you actually own. This is the fun part, so pay attention.

Cash and Cash-Like Things

First up: cold, hard cash in your checking and savings accounts. Yes, that counts. So does the money in your emergency fund and that dusty piggy bank on your dresser (we won’t tell anyone).

Also include certificates of deposit or money market accounts. Basically, if you could withdraw it tomorrow without selling a kidney, it’s an asset.

Investments

Your 401(k), your IRA, that random stock you bought after a friend’s “insider tip” (ouch, sorry). They all count. Even the cryptocurrency you’re emotionally attached to—yes, even the Dogecoin. Count it at today’s value, not what you hope it’ll be worth.

Same with any brokerage accounts or mutual funds. Don’t forget your employer’s retirement plan—that’s your money, even if it feels like make-believe until retirement.

A Simple Guide to Calculating Your Net Worth - bestbuhay.com

Real Estate (Yes, Your Home)

If you own a house, condo, or a tiny cabin in the woods, include its current market value. Not what you paid for it ten years ago, and definitely not what your aunt thinks it’s worth because she “has a feeling.” Get a real estimate.

Same for any rental properties you own. That’s an asset. If you’re renting, don’t worry—your security deposit might not count, but your freedom from a leaky roof sure does.

Big-Ticket Items (With a Caveat)

Your car? Only if you own it outright and could sell it for real money. That 2012 sedan with the dent? Be honest: it’s worth maybe $3,000. Count it, but don’t get carried away.

Jewelry, art, collectible Beanie Babies—only if you could actually sell them quickly. If it’s a sentimental teddy bear, leave it out. No one is buying your feelings on eBay.

Your Liabilities: The “Uh-Oh” List

Now the part everyone tries to forget. Liabilities are what you owe. We’re being honest here, remember?

Mortgages and Loans

Your mortgage balance. Student loans. Car loans. Personal loans from that friend who keeps asking for repayment. All of it. Write down the total amount you still owe, not the monthly payment.

Calculating net worth: financial success, money tracking, goal setting

If you’re like me and have a love-hate relationship with your student loans, just list the number. It’s not personal, it’s math.

Credit Card Debt

This one stings. Include every single balance, even the one you swore you’d pay off last month. Yes, even the one with the zero-interest promo that expires tomorrow. No excuses.

Medical debt, back taxes, or money borrowed from family—put it all in. If you owe it, it counts. Your net worth doesn’t care about your intentions.

The Simple Math That Changes Everything

Now add up your assets. Then add up your liabilities. Subtract the liabilities from the assets. Boom—your net worth. It could be positive, negative, or a weird in-between number that makes you reach for more coffee.

If it’s negative, don’t panic. Net worth isn’t a judgment; it’s a starting point. It’s like stepping on a scale after a holiday meal—unflattering but useful.

What Your "Net Worth" Is, Why You Should Always Know It, & How To

If it’s positive, awesome! But don’t buy a yacht yet. Net worth changes every day based on the stock market, your spending, and whether your car’s transmission gives up.

What’s NOT Included (Don’t Be That Person)

Your salary is not an asset. Wait, what? Nope—salary is income, not something you own. Your future earning potential is a beautiful thing, but it doesn’t go on the net worth list. Same with your social security benefits or pension—only count what you’ve already saved, not what you’ll get someday.

And please, do not include your Netflix subscription or your gym membership. I know you love Stranger Things, but it’s not an asset. Unless you’re secretly selling spoilers. Then maybe it is?

Why Bother?

Because your net worth is a reality check wrapped in a number. It tells you if you’re building wealth or just spinning your wheels. Think of it as a financial selfie—not always flattering, but great for tracking progress.

Check it once a year, or even every quarter. Watch how it moves. It’s like watching your plant grow—slow, sometimes disappointing, but deeply satisfying when something finally blooms.

So go ahead, do the math. Then text me your result. I promise not to judge. Unless you counted your Beanie Babies. Then I might judge just a little.