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The formula for this calculation is straightforward, yet it provides deep insight. First, add up the value of all your liquid assets. If you have $20,000 in a savings account, $5,000 in a money market fund, and $10,000 in a brokerage account, your total liquid assets equal $35,000. Next, list all your debts that are due within a year. If you have $5,000 in credit card debt and a $3,000 personal loan, your total short-term liabilities are $8,000. Subtracting the liabilities from the assets ($35,000 minus $8,000) reveals your liquid net worth of $27,000.
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