![]() What’s a “good” net worth? There’s no right answer. People often wonder what their net worth ought to be. To make things even easier for you, I’ve created this net worth spreadsheet in Google Docs for you to download or copy. And whatever cash you were holding would be your net worth.” “What would happen if you sold everything you own, liquidated any investments you have, paid off all of your debts, and withdrew whatever cash you have in bank accounts? You’d be standing on the street naked, with nowhere to go, holding a bunch of cash, and people would be looking at you. I like this definition of net worth from the blog Wait But Why: Your net worth is what you own minus what you owe. The point here is to - as accurately as possible - figure out the total amount that you’ve earned during your lifetime of work. Do you have unreported tips? Under-the-table income? (I’m not judging, but I’m asking you to include that when you do this exercise.) Have you done contract work that doesn’t show up here? Then, if needed, add in any money that you know is missing. To determine how much you’ve earned in your life, total whichever column has the largest numbers. This is because different incomes are taxed at different rates. ![]() Notice that there are two columns, and that the numbers are different for both. Once you’ve accessed your account, you’ll be able to view your earnings record, which shows your income for every year you’ve ever worked. (When creating or accessing your account, be sure to follow directions. To do so, you need an account with the Social Security administration. Finding this number isn’t that difficult. Have you ever thought about how much you’ve made during the course of your life? It’s probably more than you think. To that end, we’ll spend this lecture exploring the concept of personal profit and looking at some numbers that provide a snapshot of your financial history. Before we dive into earning, spending, and investing for your future, it’s important to spend some time talking about where you are - and where you’ve been.
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