How to Calculate Wealth

Calculating your wealth is an important step in financial planning.

Calculating your wealth or net worth is an important step in planning your financial future. Your net worth will affect the way you save, spend and invest your money. Calculating your net worth is easy if you know what you are doing. Many young couples find that they have a negative net worth, as they have just made major purchases such as cars and houses. However, many people will find that they have more wealth than they previously thought.


Step 1

Create a list of all your assets. This should include fixed assets such as cars and real estate. Your list of assets should also include liquid assets such as cash, stocks and bonds, as well as household items such as art, jewelry, furniture and expensive appliances.

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Step 2

Add the list of assets together to determine your total assets.


Step 3

Create a list of all your debts, including mortgages, car loans, student loans and credit cards.


Step 4

Add the list of debts together to determine your total liabilities.

Step 5

Subtract total liabilities from total assets to determine your wealth.



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