The net worth
of a person is, quite simply, how much cash they would have if they liquidated
all of their assets (except, perhaps, their organs
), and paid off all their debt.
So, you'd like to calculate your current net worth? Not too difficult. First, you'll need to tally your assets:
Value of retirement plans
Stocks, bonds, funds
Collectibles - comic books, anyone?
And let's not forget the stuff you own:
That was the hard part. Now figure out your liabilities - what you owe others:
Now subtract liabilities from assets. This is your net worth. Note that we didn't include your income in this tally - net worth is a snapshot of your financial state today, not your theoretical state tomorrow.