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Of course we're ALL priceless, I know! ... but you hear the term "net worth" on the news sometimes, especially when talking about celebrities. Calculating your net worth is very simple. Add up what your assets are worth, and then subtract what you owe on them. For example, if your car is your only asset, it's worth $6000, and you owe $8000, your net worth is negative $2000.
For most people, it's much more complicated than that. You have to add the value of your home, car, 401k, cash accounts, things that you would be willing to sell if necessary (i.e. not your great-great grandmother's wedding dress), etc. Then subtract what you owe on the home, car, credit cards, loans, etc. *Most* of the time, people in their 20's will have a negative net worth. That's completely normal. If you still have a negative net worth later in your 30s or 40s, there's a serious problem with your financial picture. It's also common for your net worth to fluctuate by thousands of dollars in your early adulthood. Financing a house, for example, would make a huge impact in your net worth.
"Net worth is total assets minus total liabilities. You might be living in a modest house and driving an economy car and have a higher net worth than your cousin who lives in a big house and has two BMWs in the garage. It's the difference between what you own and what you owe. Experts advise calculating your net worth at least once a year." You can read the full article here if you'd like.
ETA: Ooolala! I knew we were in the black, but I sat down and figured out our rough net worth and it's much better than I thought. I'm quite pleased! I don't think anyone would ever guess. I mean, I don't even have tv or a cell phone, and I'm always telling ppl how broke we are. A little frugality goes a long way
We are SOOO in the black! The great thing is, I do a rough estimate of net worth every quarter when I get our investment statements in the mail. It's great to see it keep going up. If only we didn't have this house payment hanging over us every month, then we could really save!