To calculate your net worth, you need to determine the difference between your total assets and your total liabilities. Here's a step-by-step guide:
1. Determine your assets: Make a list of all your assets, including cash, savings accounts, investments, real estate, vehicles, valuable possessions, and any other items of value. Assign a monetary value to each item.
2. Calculate your liabilities: Make a list of all your liabilities, including mortgages, loans, credit card debt, student loans, and any other outstanding debts. Assign a monetary value to each liability.
3. Subtract your liabilities from your assets: Subtract the total value of your liabilities from the total value of your assets. The resulting number is your net worth.
Net Worth = Total Assets - Total Liabilities
Remember, your net worth is a snapshot of your financial standing at a specific point in time. It's important to regularly update your net worth calculation as your financial situation changes.
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