Assets – Liabilities = Net Worth (or Wealth)
Use our Financial Position Worksheet to calculate your net worth.
Liquid Assets – Liabilities = Liquid Net Worth
Liquid assets are those which you can easily convert to cash, usually within a week, without much change in their value. That excludes your house and car from the liquid asset calculation, meaning your liquid net worth is typically much lower than your net worth.
Having sufficient emergency funds in savings to cover three months to a year of expenses may be prudent in case of unemployment, illness or divorce.
According to the U.S. Census Current Population Report The Wealth of Households 2020, while 83% of Americans own a car, 61.9% have equity in their homes, 25.1% have stocks in investment accounts, 15.5% have business assets, and just 6.9% own rental properties.
See Figure 2 from the Wealth of Households 2020 to get an idea about how your household compares to other Americans.
