Understanding your net worth provides tremendous insight into your true financial standing. Here is how to calculate your net worth—and why you should do it regularly.

Knowing your net worth can give you insight into your overall financial health.

How to Calculate Your Net Worth originally appeared on usnews.com Update 09/26/24: This story was published at an earlier date and has been updated with new information.

Net worth is useful in measuring your progress toward key goals such as retirement planning and may also be used by lenders to determine your eligibility for a loan.

Trying to build wealth without knowing your net wealth is like steering a ship without a compass. You might not get very far, and you could even go backwards.

Tangible Book Value (TBV) offers insight into a company’s net asset worth. Learn its importance, formula, and applications with examples.