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CALCULATE YOUR NET WORTH

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When it comes to tracking the health of your personal finance, the net worth statement is the best way to measure your financial situation. This easy calculation can help you determine if you are on track with your financial goals, or if you are in trouble and need to tackle your debt. Download the Finance Throttle Net Worth Tracker or consider spending the time to create your own.

WHAT IS A GOOD NET WORTH?

Every person is different. Your net worth should not be compared to others. A 35 year old with a net worth of $200,000 could be better than a 35 year old with a higher net worth of $300,000 depending on their cost of living and what they are invested in. The Net Worth Statement is a tool for you to measure your own financial health. Here are a few examples of the median net worth by country.

  • United States $45,000
  • Canada $97,000
  • U.K. $108,000
  • France $100,000
  • Italy $104,000
  • Germany $43,000
  • Japan $120,000
  • Switzerland $244,000

Examples

When calculating the net worth of your car (asset), you would first see what your car is worth. In this example, your car is worth $12,300.

When calculating what you owe on your car loan (liability), you would simply check your remaining balance on your loan. For example $6,000.

If you were to sell your car today, the net worth of your car would be $12,300 – $6,000 = $6,300. The value of your home subtracted by the mortgage owed would get you the net worth on your home. You ALWAYS want your ASSETS to be higher than your LIABILITIES.

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Hyder A.

Hyder is the engineer and blogger behind Finance Throttle, a blog that helps you accelerate your net worth through personal finance. With a Master’s degree and 10+ years of experience in manufacturing, Hyder is well versed in the topics of engineering economics and financial studies helping him to invest in equipment and reduce manufacturing costs. Hyder is passionate about cars and earning money as he bought a Porsche at 21, became a landlord at 24, and paid off $40,000 in student loans at 25. Along with his wife, they are currently on track in paying off their $282,000 mortgage by 2026 (Only 7 years!)