How To Calculate Your Net Worth

Sloane | November 1, 2013

We admit it, we’re obsessed with knowing how much celebrities make and what they’re buying. It’s human nature to wonder what the other half has and luckily, the Internet provides us with that information on a daily basis. We normal people love to take breaks from our everyday lives and dream about the lives of the rich and famous. We want to know what kind of car Justin Bieber is driving, what kind of handbag Julia Roberts is carrying, and what kind of olive oil Jamie Oliver uses at home. There’s nothing wrong with taking a break from reality to dream about a life filled with frivolous purchases and luxury vacations a la our favorite celebrities.

Have you ever wondered how we figure out the net worth of your favorite celebrity? It may seem complicated but it’s actually easy one you collect all your financial data. First, you have to establish a baseline net worth and yearly earnings for each celebrity. Next, each celebrity is assigned a financial IQ (are they good with their money? Have they ever filed for bankruptcy? Do they spend money on silly toys rather than invest their fortune?) Next we look at the different elements that could affect a celebrity’s net worth. Everything from lawsuits, to divorces, endorsements, investments, number of children, and health can affect their net worth.

Collecting this information is the hardest part of figuring out the net worth of a celebrity. Once you have this information you can calculate how much a celebrity would make by selling their assets or options on future royalties or guaranteed earnings.

To figure out your own net worth make a list of your assets. This includes:

  • Checking account balance
  • Savings account balance
  • Bonds
  • Stock Holdings
  • Home
  • Automobiles
  • Cash
  • Coins
  • Collectibles
  • Jewelry
  • Antiques
  • Art

Once you have those numbers, add everything together and come up with the total. Next, make a list of your debts. This includes:

  • Credit card balances
  • Student loans
  • Auto loans
  • Personal loans
  • Home loans
  • Mortgage balance

Again, add those numbers to come up with your total. The next step is easy. Take your total assets and subtract that from your total debt. The resulting number is your net worth.

If you need help calculating, use this handy tool from CNNMoney to help you.

Perhaps your net worth isn’t quite as large as some of the celebrities we feature on, but with time, and ingenuity, one day you too could make it on this site!

About the Author

Written by Sloane

Before joining, Sloane worked as a freelance writer and illustrator for a variety of clients. She attended University of Missouri where she majored in English. Her work has been published in literary magazines, newspapers, and textbooks. She currently resides in Miami, Florida. You can learn more about me on Google +

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