You probably know of billionaires like Jeff Bezos and Elon Musk who have net worths of $100 billion or more 🤑

But what does that actually mean, and how do you calculate net worth?

Net worth = the financial or monetary worth of somebody 🏦

To calculate your net worth, you just take the total value of your assets, and subtract your liabilities.

Assets are what you own.

For example a home, phone, your car, cash in your bank account or anything else that you own that has value 🏠

Your liabilities are what you owe: a car loan, mortgage, credit card debt, etc 💸

Let’s say all you have is $50 in your Bloom account, $20 in cash, and you own a $100 bicycle

But, you owe your friend Jake $20 because he bought you lunch last week 🍔

So, you would have $170 in assets, and $20 in liabilities

This would then put your net worth at $150 💸

According to the Federal Reserve, the median net worth of an American family is $121,760 🤔

That means the median family's assets - liabilities is roughly $120K.

Try calculating your own net worth: what is the value of everything you own? And what are your liabilities?

You might be surprised at what you find! 😊