What is my Net Worth? (Net Worth vs. True Worth)

What is my Net WorthWhat is my Net Worth?

Your net worth is simply what you have less what you owe.  To calculate your net worth, start by adding up all of your assets.  Your assets include such things as:

  • Cash / money in checking and savings accounts

  • Investments (stocks, bonds, treasuries, precious metals, etc.)

  • Retirement account balances

  • Money in college savings accounts

  • The cash value of any life insurance policies

  • Current market value of your home (assuming you’re not renting)

  • The market value of any other real property that you own

  • The market value of your cars (this will drop dramatically in the early years of ownership due to depreciation)

  • The value of the items you own (home furnishings, jewelry, furniture, collectibles, etc.)

Now sum up your assets.  Take a look at that number.  Do you like what you see?  If you were completely out of debt, this would be your net worth!  You can use this number as an incentive to get out of debt.

Now let’s look at the other side of the ledger, your liabilities.  This list includes such items as:

  • Student loans

  • Medical bills

  • Credit card debt

  • The remaining balance on your mortgage (or mortgages)

  • Car loans or leases

  • Any other loans (lines of credit, home equity, etc.)

Now total your liabilities.  Subtract your liabilities from your assets and you have your net worth.

  So how do you know whether your net worth is good or bad?  If your net worth is negative, that’s not good.  It could indicate that you are living a lifestyle that your income can’t support.  Start digging out while the digging is good.  If your net worth is $1 million or more, technically you are a millionaire.  Congratulations!

CNN Money has a calculator that will tell you how your net worth compares to others in your peer group (age and income level).  Whether your net worth compares favorably to your peers or not, there is a far more important measure of your worth found in the words of scripture.

What is my True Worth?

The Bible says your true value is found in Jesus Christ.  You have value in the fact that God made you (Psalm 139:13).  He made you in His image (Genesis 1:27) and He has plans for you (Jeremiah 29:11).

Whether you have spent time in prison, held a public office or won a Nobel prize, you have inherent value because Jesus paid a tremendous price for you (1 Corinthians 6:20).  God sent his Son to die for you so you can be with Him forever.

But God demonstrates His own love for us in this: While we were still sinners, Christ died for us. – Romans 5:8 NIV

So take heart!  Work on improving your net worth if you want.  My 5 Step Debt Reduction Plan can help you get started.  Just know that, high net worth or not, God sees your true worth and He loves you.

Maybe you’ve never personally accepted what Christ did for you on the cross.  There’s no better time than now!  You can find out more at my Plan of Salvation page.  Thanks for reading and God bless you.

Can I pray for you?  I would love to hear from you.  Contact me.

Want more on this topic?  Check out the Biblical Money Principles archives.