 TITLE: How to Calculate Your Net Worth CONTENT: What Is Net Worth?\n------------------\nEssentially, your net worth tells you how much money you have after you deduct what you owe from what you have. As a result, it incorporates both sides of your personal balance sheet: assets and liabilities.\n\"Financial success depends largely on your ability to grow your assets while decreasing your debts,\" says Ryan McPherson, founder of financial services firm Intelligent Worth in Atlanta. \"No other number represents your progress on these two fronts like your net worth.\"\nYour net worth can be especially helpful when things don't go as expected. \"In the event that you have a major financial catastrophe such as a death, illness or job loss,\" says Roslyn Lash, financial educator and founder of Youth Smart Financial Education Services in Winston-Salem, North Carolina, \"knowing this figure can help you determine if and how long you could sustain yourself.\"\nKnowing your net worth can also help to reaffirm or establish your financial goals and your budget. And finally, your net worth is a good figure to use to measure your progress over time. If you're increasing your investments and savings and reducing your debt, you'll be in better shape to reach those financial goals. END