How to Calculate Your Net Worth

Assets are everything that has value and that you own. Organize them by category so you do not forget anything:

Liquid assets: Cash in checking accounts, savings accounts, daily-liquidity CDs, emergency funds. These are values you can access quickly.

Investments: Stocks, mutual funds, fixed income (treasury bonds, CDs), cryptocurrencies, retirement funds. Use the current market value, not the amount invested.

Real estate: Properties in your name, including land. Use the estimated market value, not the deed value.

Other assets: Vehicles (use market reference tables), high-value jewelry, artwork, business equity.

Tip: In PaxMoney, you can register all these assets separated by account and currency. The app calculates the total value automatically.

Liabilities are all your debts and financial obligations:

Financing: Mortgage, vehicle loans, student loans. Consider only the current outstanding balance, not the total value of the asset.

Short-term debt: Credit card (outstanding balance), overdraft, personal loans, store financing.

Other obligations: Overdue taxes, owed alimony, loans from family and friends.

Be honest and include everything. Many people underestimate their liabilities out of shame or denial. Remember: this calculation is for you, and it is only useful if it is accurate.

Now subtract: Net Worth = Total Assets − Total Liabilities.

Practical example: - Checking account: $5,000 - Investments: $80,000 - Home: $350,000 - Car: $45,000 - Total assets: $480,000

• •Mortgage: $200,000
• •Credit card: $3,000
• •Total liabilities: $203,000

• •Net worth: $277,000

The absolute number matters less than the trend. If your net worth is growing month over month, you are on the right track. If it is declining, it is time to review your habits.

With PaxMoney, this calculation is done automatically. Just keep your data updated and the app shows your net worth automatically, with historical evolution charts.