What is your net worth? Well, before we can wrap our heads around our own financial status, it’s important to understand what is net worth? Net worth is one of the more general indicators of one’s financial status. When you understand the relationship between your incoming and outgoing funds, you can have better insight into each of your financial goals that knowledge can bring more awareness when you make financial choices in the future.


The most important thing to know is….the calculation! You can’t know your net worth if you don’t know how to get it. Thankfully, for most of us, this is one of the easier financial calculations to make.

Assets-Liabilities=Net Worth

Now, to understand the equation, you must understand each variable. In the world of finance, an asset is anything tangible or nontangible that holds a positive economic value. A few examples would be cash, property, investments, or a car. In contrast, a liability is any financial obligation or “debt” someone may have. Examples of liabilities would be your mortgage, student loans, credit card debt, etc.

To begin, the first goal is to have a positive net worth. This would mean that the assets you hold have a greater total value than your liabilities. Check out the chart below as a simplified example of a net worth calculation: 





Home Market Value




Retirement Accounts


Credit Card Debt




Student Loans


Car Value


Car Loan






Assets ($282,000) – Liabilities ($201,000) = Net Worth of $81,000

**All values listed above are for example purposes only**

 In this example, a positive net worth exists. This means that this person has assets that have more value than his/her liabilities at the time of the net worth calculation.

Maintaining your net worth will allow you to constantly understand where you face financial challenges, but also where you have financial opportunities. This ultimately can help you work towards financial goals and celebrate milestones as they are achieved. Mastering financial well-being is about being informed and dominating your finances. Do not allow the fear of financial literacy be what keeps you from success. We make decisions that affect our finances every single day, and the power to make appropriate, smart, and consistent ones is the key to financial success.

If you have any questions regarding your finances or your specific net worth, please contact any of the Infinex Financial Advisors at Rhinebeck Asset Management, a division of Rhinebeck Bank, visit www.rhinebeckassetmanagement.com or call them at 845-567-3930. Your future self will thank you!



Investment and insurance products and services are offered through Infinex Investments, Inc.  Member FINRA/SIPC.  Infinex and Rhinebeck Bank are not affiliated.

 Infinex - disclosure table