There are many different ways to calculate your net worth. Some folks include everything they own, include posessions, while others only focus on monetary items. Still others will include houses, cars, or both. At the end of the day you need to decide which items you want to include, and be consistent. Here’s what I count when I figure my net worth:

• My house & mortgage
• Cars and car loans
• All cash ( savings, checking, and money market )
• Retirement funds including 401(k) and Roth IRA
• Credit Card debt and any additional loans

I feel that one’s home is part of their net worth, even though it’s not a liquid asset. That’s why I split my net worth report into four parts – Liquid, Cars, Home, and Retirement. They are all important, and make up a piece of my net worth, but they are all very different in their purpose. Things like TV’s, furniture, and clothing don’t make the cut in my book – I think they are more in the line of consumable items rather than actual assets. Could I sell my clothes and furniture if I was in a really tough bind? Sure, but I’d likely only get a fraction of their original cost. That makes their “cash value” very low, and negligible in the net worth area.