|
In business, net worth (sometimes called net liabilities) is the total assets minus
total outside liabilities of an individual or a company.
|
Step 1: List all of your fixed assets, such as real estate and cars, at their current
value.
|
Step 2: List all of your liquid assets: cash, certificates of deposit, stocks, bonds
and bank accounts.
|
Step 3: List all jewellery, furniture and household items at their current value.
|
Step 4: Add together all of the above. These are your total assets.
|
Step 5: Subtract all of your debts, such as your mortgage, car loan and credit card
balances, from your total assets. The result is your net worth.
|
Step 6: Reevaluate and update your net worth calculations on an annual basis.
|