Net Worth

(MoneyWatch) 

How do I judge my net worth?

It's pretty simple: add up what you own, subtract what you owe, and, voila, you have your net worth. Unfortunately, few of us bother to do it regularly.

Calculating your net worth periodically — say, once a year — can help you keep tabs on your financial health and spot troubles, such as mounting debt or shrinking savings, early. It's not hard to do, though you'll need to make sure you don't overlook assets such as the cash value of any life insurance policies or the market value of items like jewelry and antiques. Also, remember to subtract the cost of selling your possessions. You should, for example, cut the value of your house by the 6 percent or 7 percent you'd pay a broker to sell it.

The following links offer tools to help calculate what you're worth and tips on what to do with the information once you've got it.

Editor's Pick

• Moshe Milevsky: What's Your Real Net Worth?

  When calculating net worth, don't leave out your most valuable asset: your lifetime earning potential.

• Why It Matters

  Five smart reasons to calculate your net worth.

• How to Crunch the Numbers

  Use this detailed calculator to tot up all your assets and liabilities, from the vested value of your 401(k) plan to the going price of your used car. Plus, find tips on how to track down tricky numbers.

• Now What?

  What you can do with your net worth calculation, including figuring out your ideal number in the future and how best to get there.

• Are You Above Average?

  Use this simple tool to quickly compare your net worth to others at your age or income level.