![]() ![]() ![]() Liquid assets are ones that can be converted into cash quickly. This is because liquidity is somewhat subjective. ![]() Some experts disagree over what to include in a liquid net worth calculation. When calculating liquid net worth, many people aren’t sure which assets to include and which to leave out. You’ll have a concrete picture of how much money you realistically have accessible to you. Knowing your liquid net worth can help you have a better understanding of your financial situation. We’ll take a look at a more complicated calculation later on that factors in retirement accounts and other non-liquid assets. This means you would have a liquid net worth of $40,000.Ĭalculating your liquid net worth only gets more complicated the more assets you have. In this case, you would subtract $135,000 from your cash equivalent assets of $175,000. However, you would still include your mortgage payment as part of your liabilities. You wouldn’t count your house in this calculation, because it is not liquid. When adding up your liquid net worth, you would start by adding up the amount in your bank accounts and brokerage accounts, totaling $175,000. You also have $5,000 in credit card debt and $30,000 in student debt. In non-liquid assets, you own a house valued at $400,000, and you have $100,000 left of your mortgage to pay off. You also have $25,000 in a brokerage account that is invested in the stock market. Say you have $150,000 total in your checking and savings accounts combined. We’ll break down the calculation process even further later in this article. Every person will have a slightly different calculation because everyone has a different combination of assets and liabilities to factor in. Once you’ve subtracted your liabilities from your cash-equivalent assets, you’ll have your liquid net worth. ![]()
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