The Right Way To Calculate Net Worth

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It’s normal to compare your financial situation with others to see how your finances measure up. Indeed, if you’ve ever calculated your net worth, or even tracked your spending, you probably enjoy reading other net worth reports and spending journals. The problem with this type of financial voyeurism is that we’re often comparing apples and oranges. Take net worth, for example. It’s supposed to be a snapshot of your financial health at a particular moment in time. But everyone seems to have their own variation or twist on what to include (and what not to include) in their net worth