—

Jennie, net worth is typically determined by subtracting debts from assets. Some people count cars and personal possessions as assets. I don’t think it’s a good idea to do that. Why? Because when it is all said and done, you need you car and your personal possessions - you can’t really sell them. Furthermore, most such items are depreciating assets. Eventually they’ll be worth zero. There are exceptions, of course. When calculating such items, it’s better to under-estimate value. What could you realistically get for it at a garage sale? Can you even sell it (anyone who has ever had garage sales knows that most items don’t even sell)?

Liabilities include such things as credit card debt, car loans, student loans, etc.

So… add up your assets and your liabilities and do a simple calculation: Assets minus Liabilities. That’s your net worth. It can be negative.

I’m 11,000 in debt with a credit card. I have a new car. I only rent.

Thanks!