How do you calculate your net worth?

My babies.

Last night, I was going through my things in preparation for the move next weekend when I came across my plate collection.

Just some back story here; I am a HUGE Gone With the Wind fan. I really mean HUGE. I see the entire four hour movie about once every two months or so. I read the 1000 page book once a year- I have it on both paperback and on my iPhone. If I ever won the lottery, the first thing I would do would be buy a first edition from May 1936, which usually go for about $1000 USD, depending on the condition. Yes, I know that much about it that I can name the approximate value. What can I say? It’s a classic! As a result of my obsession, I have 14 Gone With the Wind plates that were bought for me as a high school graduation gift. They’re worth roughly $100 each, for a total of $1400.

Normally when I’ve calculated my net worth, I’ve added my liquid assets and subtracted my liabilities. Done in this way, my net worth is negative. I never add my technology or belongings, because the value just depreciates too quickly. However, I forgot about things like my plates and my jewellery, which is also worth about $2000 altogether. These goods are only going to appreciate in value over the years. When they’re added into my net worth calculations, my net worth actually becomes around $1400.

WOW, what a difference!

The value of these things doesn’t help me in any way because I would never sell any of them, but it’s an interesting question since adding in non-liquid assets magically makes my net worth jump by $3400. It makes me feel a little bit better about myself looking at it that way.

When you calculate your own net worth, do you count your non-liquid assets or not?


10 responses to “How do you calculate your net worth?

  1. I include all my liquid assets, or things I could liquidate quickly (like my coin collection). I do not include my house or cars. So it is mostly cash and cash equivalents.

    In the end, it doesn’t matter how you do it, as long as you are consistant.

  2. I include my house and cars, mainly because I expect them all to increase. The cars will increase because we bought 2 of them for a much cheaper price than they are worth today.

  3. I kind of hate calculating my net worth. I don’t include my car, because I would not sell it. I only count my debts and my liquid assets.

    • Mine is pretty simple so I don’t mind doing it- I’m just thinking about it now because I need approximate values on my possessions to get renters insurance.

      • Bravo on getting renter’s insurance. I hope you never have to make a claim. It is completely worth the cost (I got robbed twice in 15 days and had to make a claim… who knew I had almost 10K worth of crap)!

        I would also make sure your policy covers accidents in the home like slips and falls. Again I pray you never need it, but it is nice to have just in case.

  4. I don’t collect anything or have a lot of things of value, but one thing I do have is my grandmother’s wedding ring. it’s was appraised for a lot, but I could never in a million years think of ever getting rid of it. In fact I really don’t know what to do with it period. Wear it? Get a new ring with the diamond. No idea. I feel bad it’s just sitting there.

  5. I love this — it’s so fascinating meeting collectors and viewing what they collect. (I’m a rabid treasure hunter at heart.)

    Absolutely, count your collectibles! Market value may fluctuate but — with interest rates on savings accounts hovering continuously near 0% — your collection will most likely retain initial purchasing power, and appreciate handsomely over the long term, if you’re knowledgeable within your niche.

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