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February 17, 2006


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I am very confused by various definitions of net worth. What is counted? I don't have a savings account and my pay goes into my checking where it is used up right away so I don't think that really counts. My house, however, is worth around $250,000. So is my net worth the value of my house?

Jen --

All your assets (everything you own -- including your house) less your liabilities (your mortgage, any other debts, etc.) equals your net worth.

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