net worth

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:

• Cash on hand and in bank accounts
• Market value of your home and other real estate holdings
• Surrender value of your annuities
• Cash value of life insurance
• Vested equity in
  • pension plans
  • profit sharing
  • stock plans (and current value)
• Value of retirement plans
• Stocks, bonds, funds
• Other investments
• Collectibles - comic books, anyone?
• Precious metals
• And let's not forget the stuff you own:
  • Household furnishings
  • Automobiles, boats, other recreational vehicles
  • Jewelry -that engagement ring, furs
  • Loans owed to you.

That was the hard part. Now figure out your liabilities - what you owe others:

• Mortgages
• Auto loans
• Credit cards
• Credit lines
• Student loans
• Other bills

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.