Net Worth
Liquid net worth
Restricts assets to what is reachable without penalties, taxes or a sale. Usually far smaller — and often negative even when total net worth is healthy.
The Formula
Liquid Net Worth = Liquid Assets - Liabilities
Restricts assets to what is reachable without penalties, taxes or a sale. Usually far smaller — and often negative even when total net worth is healthy.
| Symbol | Meaning | Unit | Notes |
|---|---|---|---|
| A(liq) | Liquid assets | currency | Cash and taxable investments. Excludes retirement accounts, real estate and vehicles, which carry penalties, delays or transaction costs before you can spend the proceeds. |
What Each Symbol Means
A(liq)currency
Liquid assets
Cash and taxable investments. Excludes retirement accounts, real estate and vehicles, which carry penalties, delays or transaction costs before you can spend the proceeds.
See It Worked With Real Numbers
A formula on its own does not tell you which number goes where. The how to calculate net worth page applies this equation to a concrete case, shows every intermediate step, and names the mistakes that produce a wrong answer even when the algebra is right.
Where This Formula Appears
This equation is the working core of How To Calculate Net Worth, filed under Finance. Every number the guide produces comes from substituting into this one line.