Net Worth Calculator
This simple calculator allows you to figure out your current Net Worth. Understanding your Net Worth is crucial because it provides a snapshot of your financial health and is the foundation for setting your FIRE target.
How to use the Net Worth Calculator:
Enter Your Assets:
- Real Estate (Estimated Value)
- Checking Accounts
- Savings Accounts
- Retirement Accounts (e.g., 401(k), IRA)
- Autos (Kelley Blue Book Value)
- Investments (Stocks, Bonds, ETFs)
- Any other assets (Jewelry, Collectibles, etc.)
Enter Your Liabilities:
- Mortgages
- Consumer Debt (Credit Cards)
- Personal Loans
- Student Loans
- Auto Loans
- Any other debt (Medical bills, etc.)
- Once you've entered all your assets and liabilities, the calculator will output your Net Worth.
Why you should write it down:
Knowing your Net Worth is not just about having a number; it’s about understanding your financial position. This number will be instrumental in calculating your FIRE target with the FIRE calculator in the next step. Writing it down also helps in tracking your progress over time, motivating you to make adjustments as needed to achieve your financial goals.
Tips for maintaining and growing your Net Worth:
Regularly update your Net Worth calculation to reflect changes in your financial situation.
Focus on reducing liabilities, especially high-interest debt, to improve your Net Worth.
Consider ways to increase your assets
Monitor and reassess your financial goals periodically to stay on track with your FIRE journey.
Net Worth Calculator
Why is Net Worth important?
Your Net Worth is essentially the sum of everything you own (assets) minus everything you owe (liabilities). This figure helps you understand where you stand financially and guides you in making informed decisions about saving, investing, and spending. It’s a key metric that will allow you to track your progress towards financial independence over time.
