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How to Calculate your Net Worth

Net worth– What is it and how do we increase it? Simply stated net worth is the amount your assets exceed your liabilities. Women in general tend to shy away from knowing what their net worth is because (1) They think they don’t have any assets to have a net worth (2) They have no idea what goes in the net worth calculation. Whatever your net worth is, you want to get in the habit of checking in on it on a regular basis to ensure you are moving in the right direction financially. Typically if you are saving and working on financial goals every year, your net worth should be increasing year over year.

So how do you figure out what your net worth is?

To make it easy, just make a list of what you OWN versus what you OWE

Examples of what you OWN Include:

Car, checking, savings account, and other cash accounts, home, retirement accounts (401k, IRA, etc), business, and your personal belongings (furnishings, jewelry, electronics, etc)

Examples of what you OWE Include:

Credit card debt, student loans, mortgage debt, business debt, personal loans, etc

Knowing your net worth is an important step to becoming a Financially Wise Woman, however it is not the end all in financial planning. Eleanor Blayney, CFP® states in her book A Woman’s Worth “your financial success depends far less on what you have and much more on what you do with what you have.”

So remember as you calculate your net worth (OWN-OWE) there is no good or bad net worth, but rather a number that you should check on every year and work on increasing every year.

Call to Action:

Calculate your net worth today. Make a list of what you OWN and what you OWE. Then deduct what you owe from what you own. Net worth = OWN-OWE.

For further information I invite you to check out my Financially Wise Women Ebook or contact me directly at

Ready for Part 3? It’s all about cold, hard cash.