Calculating Net Worth

[genchan]

How do you go about calculating your net worth? Do count assets even if you can't liquidate them? How do you calculate the worth of furniture, clothes and the like?

[DivaJen]

For a a conservative amount, figure out what you think you could get if you did sell an item. For assets you can't liquidate - everything can be liquidated, for a price. Find out what that cost would be and factor it in.

[amomof4]

I wouldn't include clothing & furniture. Certainly they are an asset & increase your net worth. But it doesn't seem like it would give you a good picture. I would include the equity in your home, but keep in mind it costs about 5-7 percent to sell. So substract that to get a more realistic net worth. I also wouldn't include the car equity as it depreciates and you're not likely to sell it.

Here's what I would do to calculate a realistic net worth:

Liability: All debt
Assests: All savings

If your savings is greater than your debt, you have a positive net worth. If not, you have a negative net worth.