![]() ![]() An illiquid asset, on the other hand, can’t be converted to cash quickly. ![]() A liquid asset is basically cash that’s easy to get to-like money in a money market account. There are two types of assets: liquid and illiquid. So let’s clearly define what to include in each column before you start crunching the numbers: You can’t calculate your net worth until you know exactly what counts as an asset and what’s a liability. Just answer a few simple questions, and you’ll find out your net worth in five minutes-that’s less time than it takes to drink your morning coffee!įiguring Out Your Net Worth: What Are Assets and Liabilities? We just made it easier for you to find that number with our Net Worth Calculator. It’s the total value of all your assets-including your house, cars, investments and cash-minus your liabilities (things like credit card debt, student loans, and what you still owe on your mortgage). Your net worth is what you own minus what you owe. When it comes to your money, your net worth is one of the best ways to see where you stand financially. That number essentially says, "You are here," and it can help you get back on track with wealth building.įiguring out your net worth isn’t rocket science-it’s a simple formula! Once you have all the information you need, running the numbers takes almost no time. Sometimes we just need a landmark to remind us where we are so we can get to where we want to go. All of us get a little lost from time to time. ![]()
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