This is How to Calculate your NET WORTH
Do you know your net worth? It's not that hard to calculate.
One of our Goddesses asked if she can include her Cryptocurrency in her net worth. Another asked if her car can be included.
The answer is Yes! You can include those things in your net worth calculation, along with a lot of things you probably hadn't thought about.
Your net worth is the value of your assets (what you own) minus your liabilities (what you owe).
An asset is anything you have that has significant value. Here are the assets you can include in your net worth calculation:
- Properties (residence*, vacation homes, investment properties)
- Furnishings
- Cars and other vehicles
- Art, jewelry, and other valuable possessions
- Investments -- stocks, bonds, etc.
- Equity value of investments in syndications ( This value usually rises, the longer you are in a deal!
- Businesses you own or have an ownership interest in
- Cash (savings accounts, checking accounts, CDs, Crypto accounts)
- Retirement Accounts, College Funds, Health Funds
- Insurance Policy cash value
Liabilities/Debts will include:
- Mortgages
- Bank loans
- Personal loans
- Car loans (including unpaid lease obligations)
- Credit card debt
You do not need to add utility bills, phone bills, etc.
To calculate, add up the value of all your assets and then subtract the total amount of your liabilities. The balance is your net worth -- it's a snap shot of how much you're worth at this moment. Regardless of your number (even if it's negative), our goal is to help you increase that net worth until you're financially free.
*One criterion to be qualified as an accredited investor, is that you have a net worth of $1 million or more, not including your primary residence. So for your net worth calculation for accreditation purposes, you should exclude the value of your home from the assets column as well as the value of your mortgage or HELOC from the liabilities column.
Do You Know If You're An Accredited Investor? CLICK HERE
In order to find out if you are an Accredited investor, you need to either look at your GROSS INCOME (above $200k, or $300k as a couple) or your NET WORTH - your total ASSETS minus your LIABILITIES of $1M or more. For real estate investing purposes, you exclude the value of your primary residence, and therefore any mortgage, or equity line of credit on your primary residence). Here is the link to the full explanation click here.
There you have it! What's your net worth? Is it what you want it to be? If not, what steps are you committed to taking to get it higher?
