How to calculate my net worth?

Your net worth is basically the total amount that would be left if you sold all your assets and paid back all your debt today:

  • assets = 720’000
  • debt = 420’000
  • net worth = 300’000

The number is usually defined in US-dollar and used to compare the success or power of grown ups. I personally don’t see much value in it beside to use it as a performance indicator to check how your wealth is developing.

I want to be a millionaire!

Being a millionaire means theoretically to have a net worth of 1’000’000 USD. The term originated in the 1970s in the US and is still today in use as a synonym for the “super rich”.

Interesting is that in the 1970s having a million USD was really a lot and meant that you would be financially free (with a decent lifestyle). If you take inflation into account, it would be around 7’000’000 USD today.

Depending where you live today, 1’000’000 USD might not be enough to be financially free.

1 Comment How to calculate my net worth?

  1. Pingback: Financial optimisation – where to start? Giles.Money

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