Question 1

What is net worth?

Accepted Answer

Net worth is the total value of everything you own (assets) minus everything you owe (liabilities). It provides a single number snapshot of your overall financial position. A positive net worth means your assets exceed your debts; a negative net worth means you owe more than you own.

Question 2

What counts as an asset?

Accepted Answer

Assets include cash and savings accounts, investment and retirement accounts (401k, IRA, brokerage), real estate (your home and any investment properties), vehicles, and other valuables like jewelry or collectibles. Essentially, anything with monetary value that you own is an asset.

Question 3

What's a good net worth for my age?

Accepted Answer

Net worth varies significantly by age. According to the Federal Reserve's Survey of Consumer Finances, the median net worth for Americans under 35 is about $39,000, for ages 35-44 it's about $135,000, for 45-54 it's about $247,000, for 55-64 it's about $364,000, and for 65-74 it's about $410,000.

Question 4

Should I include my home in my net worth?

Accepted Answer

Yes, your home's current market value should be included as an asset, and your remaining mortgage balance should be included as a liability. The difference is your home equity. Some people also track their 'liquid net worth,' which excludes home equity since it's not easily accessible without selling.

Net Worth Calculator

+ Assets

Cash & Savings

Retirement Accounts

Investments

Real Estate

Other Assets

− Liabilities

Mortgage

Student Loans

Auto Loans

Credit Cards

Other Debts

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