Create Date: October 17, 2024
Last Modified Date: December 3, 2024
Liquid net worth can be calculated with the following variables:
Your result will be a single dollar value representing your liquid net worth. A positive result indicates that you have more liquid assets than your liabilities. Alternatively, a negative result indicates you have more liabilities than liquid assets.
Our liquid net worth calculator tool is as simple as possible. The steps involved with using it include:
Let's say we want to calculate our liquid net worth. We will first need to find the value of our liquid assets and then the value of our liabilities. Our liquid assets are worth a total of $124,000 and our total liabilities are currently $45,000.
Using this tool to help us, we will enter 124,000 into the first field for our assets then we will enter 45,000 into the second field for our liabilities. We can then hit calculate and get our liquid net worth to be $79,000. Being a positive net worth, our liquid assets clearly outweigh our liabilities which can be a great sign.
No, houses and other types of real estate properties do not count towards liquid net worth since they are not considered liquid assets.
No, cars are not generally considered to be liquid assets.
A good liquid net worth for one person may not be considered a good one to another person, so it all depends on your expectations, your current situation, and other factors. Generally, it can be said that a liquid net worth that remains north of $100,000 at all times is very good.
Cash, bank account balances, and stocks or bonds are three examples of liquid assets.
