If you’re calculating your net worth, you should tally your assets first

If you’re calculating your net worth, you should tally your assets first

Whether you’re trying to figure out what you have on hand for a personal „rainy day“ fund or to calculate your net worth, you’ll want to count your assets.

What’s an asset?

An asset is anything you own that adds financial value, as opposed to a liability, which is money you owe.

Examples of personal assets include:

  • Your home
  • Other property, such as a rental house or commercial property
  • Checking/savings account
  • Classic cars
  • Financial accounts
  • Gold/jewelry/coins
  • Collectibles/art
  • Life insurance policies

How to calculate your net worth with assets

Include any money you have in the bank as well as the value of your investments. Include your property value and the worth of your car if you were to sell it, along with any monthly payments you might receive from a pension or retirement plan.Continue reading