# What should you include in your net worth? > Include meaningful assets you own at a reasonable current value and every current liability you owe. Leave income, leased property, and speculative future value outside the dated balance-sheet snapshot. - Canonical URL: https://www.worthi.app/guides/what-to-include-in-net-worth - Author and reviewer: Vlad Poncea - Published: July 15, 2026 - Last materially updated: July 15, 2026 ## Short answer Include cash and bank accounts, investments and retirement accounts, real estate, vehicles and other meaningful property, business or private holdings that can be valued reasonably, and every current debt. Use current balances, avoid double counting, include only the ownership share being measured, and keep uncertain or illiquid items separate when a credible value is unavailable. ## The governing rule Net worth = total assets − total liabilities. Investor.gov describes a net worth statement as what a person owns minus what they owe. The Federal Reserve likewise calculates household net worth as assets less liabilities. Choose one calculation date, scope, reporting currency, and valuation method. Consistency makes one period comparable with the next. ## Cash and financial accounts Include current balances for: - Cash on hand. - Checking and savings accounts. - Money-market and cash-management accounts. - Certificates of deposit and similar deposit products. - Meaningful balances in payment wallets. - Foreign-currency cash converted with one documented method. Avoid counting the same money twice when a wallet or cash balance is already included inside another account total. Label restricted cash so it is not mistaken for immediately available money. ## Investments and retirement assets Include brokerage accounts, stocks, funds, bonds, retirement accounts, and other investments at a reasonable current value. Public investments usually use a current market value. Private holdings may require a conservative estimate with a visible valuation date. For a defined-benefit pension without a current transferable balance, avoid inventing a lump-sum value. Track the expected future benefit separately unless a statement provides a present cash or transfer value that fits the chosen method. ## Real estate, vehicles, and meaningful property Use a reasonable current market estimate for: - A primary residence and other real estate. - Land. - Vehicles, boats, and other meaningful transport assets. - Collectibles, jewelry, art, or similar items with supportable resale value. Do not automatically use purchase price. Property estimates can be uncertain, and vehicles or personal property often depreciate. Prefer conservative, reproducible valuation sources over false precision. Everyday clothing, furniture, and electronics can usually be left out when their resale value is small, uncertain, or too costly to maintain consistently. ## Businesses and private investments Include only the ownership share that belongs to the person or household being measured. Use the strongest available support, such as a recent transaction, formal valuation, cap-table statement, or documented method. If the asset cannot be valued credibly, keep it in a separate record with its last supportable value or mark it as unvalued. An explicit limitation is more useful than an optimistic guess. ## Liabilities Include the current balance of every amount owed: - Mortgages and home-equity borrowing. - Credit cards and lines of credit. - Student loans. - Vehicle and personal loans. - Personally owed business-purpose loans. - Margin debt. - Taxes, medical debts, and other enforceable obligations. Use the amount currently owed, not the original amount borrowed and not all future interest. Include debt even when it financed an asset listed on the other side of the statement. ## What to leave out Usually exclude: - Salary and future employment income. - Expected bonuses or future business earnings. - Possible inheritances that have not been received. - A rented home or leased vehicle. - Borrowed items and employer-owned equipment. - Speculative future appreciation. - Personal possessions with negligible or unsupported resale value. These items may affect future cash flow or financial planning, but they are not current owned assets with a supportable value. ## Avoid double counting For a home, use either: 1. Full current home value as an asset plus the current mortgage as a liability; or 2. Home equity alone. Do not record full home value, subtract the mortgage, and then add home equity again. Apply the same principle to brokerage accounts and their holdings, businesses and underlying assets, and jointly owned property. Include either the whole asset and whole liability or a consistent ownership share of both. ## Worked example Suppose a household has: - USD 20,000 in cash and bank accounts. - USD 200,000 in investments and retirement accounts. - A home worth USD 400,000. - A vehicle worth USD 20,000. Total assets are USD 640,000. The household owes: - USD 250,000 on the mortgage. - USD 8,000 on the vehicle. - USD 2,000 on credit cards. Total liabilities are USD 260,000. Net worth is USD 380,000. The example uses full asset values and lists related debts separately. ## Total net worth and liquid net worth Total net worth can include a home, retirement assets, private investments, and other holdings that may be expensive, slow, restricted, or tax-sensitive to sell. Liquid net worth narrows the view to assets that can be converted into usable cash under a documented definition, less the relevant liabilities. Definitions vary, so label the measure and record which assets, debts, selling costs, and taxes it includes. Do not silently remove illiquid assets from total net worth. Track liquid net worth as a separate measure for a different question. ## Net worth is not complete financial well-being A person can own substantial property and still lack emergency cash. Another person can have a modest or negative net worth while building income and paying down education debt. The Consumer Financial Protection Bureau describes control over day-to-day finances, shock capacity, progress toward goals, and freedom of choice as parts of financial well-being. Use net worth to understand the balance sheet, and use cash flow, liquidity, insurance, goals, and personal circumstances for other decisions. ## Sources - [Figure Out Your Finances](https://www.investor.gov/introduction-investing/investing-basics/save-and-invest/figure-out-your-finances), Investor.gov, U.S. Securities and Exchange Commission. - [Financial Accounts of the United States: recent developments](https://www.federalreserve.gov/releases/z1/current/recent_developments.htm), Board of Governors of the Federal Reserve System. - [Financial well-being resources](https://www.consumerfinance.gov/consumer-tools/educator-tools/financial-well-being-resources/), Consumer Financial Protection Bureau. ## Important limitation This guide provides general educational information, not individualized financial, investment, tax, legal, accounting, valuation, appraisal, or insurance advice. Asset and liability treatment may differ for lending, tax, divorce, estate, benefits, regulatory, or legal purposes. ## Related documentation - [Free net worth calculator](https://www.worthi.app/tools/net-worth-calculator/index.html.md) - [How to calculate net worth](https://www.worthi.app/guides/how-to-calculate-net-worth/index.html.md) - [How often to update net worth](https://www.worthi.app/guides/how-often-to-update-net-worth/index.html.md) - [How to track assets in net worth](https://www.worthi.app/guides/how-to-track-assets-in-net-worth/index.html.md) - [How to track home equity](https://www.worthi.app/guides/how-to-track-home-equity/index.html.md) - [Multi-currency net worth tracker](https://www.worthi.app/features/multi-currency-net-worth-tracker/index.html.md) - [worthi net worth tracker](https://www.worthi.app/net-worth-tracker/index.html.md)