Do You Know What Is Your Net Worth?

What is Net Worth?

Your net worth is a measure of how wealthy you are.

A person may be cash rich, while another may be cash poor. But because the cash poor person owns a property, both of them could have equal net worth.

For example, the net worth of person A who are driving posh car and living in landed property might not be more than person B who owns a HDB flat that has already been paid off and did not drive any car. Why? This is because the liability of the person A definitely exceed his asset.

To calculate your actual net worth, you simply add up all your assets, and subtract from that sum all your liabilities.

More details how?




To calculate your assets, simply add up all your cash savings, CPF balances, insurance cash value (you may want to take the surrender value of all your policies). Then add the market values of all your shares, unit trusts and properties. The result is the sum of all your assets.

For liabilities, add up your mortgage balance (how much you still owe the bank or HDB), credit card balance, renovation loan balance, and car loan balance. Add other sums of money you still owe banks, financial institutions, CPF, HDB, relatives and friends, and you’ll get the sum of all your liabilities.

Then apply this simple formula:

Your Net Worth = Sum of Assets – Sum of Liabilities

And compare it with your target net worth, what do you have?