Net worth

Your  is simply the amount by which your assets exceed your liabilities.

One way of tracking it is with a net worth statement. You might also want to prepare statements that value your estate for any estate tax, as well as a statement showing the amount subject to probate.

Net worth statements
A net worth statement shows the market value of your assets, and how much you owe in debts, at a particular time. (This is different from an income statement or a budget.) For example, you might create a net worth statement for yourself as of December 31, 2022. The difference between the total value of your assets and the total of your debts is your net worth.

Reasons for creating a net worth statement include:
 * To check your progress towards your financial goals
 * To plan for changes in assets or liabilities
 * To minimize your tax liability
 * To estimate how well your dependents could live off an inheritance if you were to die in the near future
 * To determine how much life and property insurance you need
 * As a reminder to adjust your insurance coverage or assets
 * To estimate your retirement savings progress

Assets
For U.S. citizens, assets in your net worth statement might include:
 * Your checking and savings accounts balances, and the balance of any CDs
 * The market value of stocks, bonds, and mutual funds and Exchange-traded funds (ETFs) in investment accounts
 * The current value of any 401(k), IRA, and similar retirement plans
 * The market value of your home, and any other residential or rental real-estate
 * Cash value of insurance or pensions
 * Market value of personal property: for example cars, furniture, and jewelry
 * Other assets: for example, business related assets, such as business value and notes receivable

Liabilities
Your liabilities would include:
 * Credit card balances
 * Lines of credit balances
 * Car loan balances
 * Mortgage balances
 * Student loan balances
 * Other debts
 * Taxes due

The following table shows an example net worth statement.

Net worth calculators

 * Bankrate.com
 * Smartmoney.com