What is net worth?
Net worth is the most comprehensive measure of financial health, representing what you would have left if you liquidated all assets and paid off all existing debts.
Calculate personal net worth by summing total financial assets minus liabilities.
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Add cash accounts, investment portfolios, real estate value, and vehicles.
Add mortgages, car loans, student loans, and credit card debts.
Net Worth = Total Assets - Total Liabilities.
Net worth is the most comprehensive measure of financial health, representing what you would have left if you liquidated all assets and paid off all existing debts.
Yes, your home equity (market value of the home minus outstanding mortgage balance) counts toward your total net worth.