Your Net Worth
We want to maximize your net worth. To calculate your net worth, just subtract your debts from your assets.
Your assets might include:
- Checking and savings accounts,
- A 401(k) and IRA,
- An HSA and/or FSA,
- Regular, taxable stocks and bonds,
- The appraisal value for your home,
- The blue book value of your car, and
- The cash in your wallet.
Debts might include:
- Credit card balances,
- Student loans,
- The lease on your car,
- The balance of your mortgage, and
- A running tally of money owed to roommates.
If you happen to work at a startup, your compensation may include options. Pricing options reliably is difficult, and startups are often unsuccessful. In calculating your net worth, I'd suggest leaving options entirely out of the equation. Treat them as a lottery ticket; they may turn out to be valuable, but the odds aren't in your favor.
For far more information on startup options, I'd suggest reading David Weekly's excellent Introduction to Stock & Options for the Tech Entrepreneur or Startup Employee.