LIQUID NET WORTH:  HOW TO CALCULATE AND  8 WAYS TO INCREASE YOUR LIQUID NET WORTH

Establishing and understanding your liquid net worth is an integral part of making sound financial decisions, as well as prepping for the future.

It’s a good idea to calculate your liquid net worth at least once a year so that you can track your progress over time.

What Is Liquid Net Worth

In simple terms, it’s the value of your liquid assets minus your liabilities. This number can give you a quick snapshot of your overall financial health.

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Net Worth vs.  Liquid Net Worth

Calculating your liquid net worth requires an alternative approach to the method used to calculate total net worth.

Calculating liquid net worth is a great way to get started if you’re trying to get a handle on your personal finances.

How To Calculate Liquid Net Worth

What Are Liquid Assets

To calculate liquid net worth, we need to include only liquid assets. Of course, the definition of liquid assets may differ based on your circumstances.

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