Should I include my car as an asset?

Yes, at its current market value (e.g., Kelley Blue Book private-party value), not what you paid for it. If you have an auto loan, include the remaining balance as a liability. The net of the two is the equity you actually hold.

My net worth is negative — is that unusual?

Very common, especially in your 20s and 30s when student loans and a new mortgage often outweigh accumulated savings. The important question is whether it is trending toward zero over time.

Personal Finance

Net Worth Calculator

Net worth is the single most useful snapshot of your financial health. It measures what you own (assets) minus what you owe (liabilities). Calculating it regularly — quarterly or annually — shows whether your overall financial position is improving or deteriorating, even if month-to-month cash flow feels chaotic.

Net Worth

How it works

Formula & methodology

Net Worth = Total Assets − Total Liabilities. Assets include cash and bank balances, investment accounts, retirement accounts, real estate market value, and vehicle market value. Liabilities include mortgage balance, auto loan balance, student loans, credit card balances, and any other debt. Use current market values for assets, not what you paid.

Source: Investopedia: Net Worth

Example

Worked example

Example: $8,000 checking/savings + $45,000 retirement account + $280,000 home value + $18,000 vehicle = $351,000 assets. Minus $210,000 mortgage + $12,000 auto loan + $28,000 student loans = $250,000 liabilities. Net worth: $101,000.

FAQ

Frequently asked questions

Should I include my car as an asset?: Yes, at its current market value (e.g., Kelley Blue Book private-party value), not what you paid for it. If you have an auto loan, include the remaining balance as a liability. The net of the two is the equity you actually hold.
My net worth is negative — is that unusual?: Very common, especially in your 20s and 30s when student loans and a new mortgage often outweigh accumulated savings. The important question is whether it is trending toward zero over time.

Tips

Practical tips

Track net worth on the same day each quarter (e.g., the 1st of January, April, July, October) so your comparisons over time are consistent.
Use conservative, current market values for real estate and vehicles — inflating asset values makes your net worth look better than it really is and can lead to poor decisions.

Results are estimates for general informational purposes only and do not constitute financial, tax, or legal advice. Always confirm important figures with a qualified professional or your lender before making a financial decision.