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How to Calculate Your Net Worth: A Beginner's Guide Knowing how much you earn each month tells you about your income. Knowing how much you spend tells you about your cash flow. But neither number tells the full story of where you stand financially. Net worth gives you a different view. It looks at what you own, what you owe, and the difference between the two. The basic calculation is simple: Net Worth = Total Assets − Total Liabilities If your assets are worth more than your liabilities, your net worth is positive. If you owe more than you own, your net worth is negative. The U.S. Securities and Exchange Commission's Investor.gov uses this same basic approach when explaining a personal net worth statement. [oai_citation:0‡Investor](https://www.investor.gov/introduction-investing/investing-basics/save-and-invest/figure-out-your-finances?utm_source=chatgpt.com) But calculating net worth properly involves more than putting a few bank balances into a calculator. You ...