Does a 401k count as net worth?

Absolutely, your 401k does count towards your net worth! Think of your net worth as a big, friendly bear hug around all your assets — your home, car, savings accounts, and yes, your 401k. It's essentially the total value of everything you own, minus what you owe.

Here's a simple way to calculate your net worth:

1. Add up all your assets.

   • Your home value, if you own one.
   • All your savings and checking accounts.
   • Your 401k, Roth IRA, and other retirement accounts.
   • BearSavings.com has a handy Net Worth Calculator to help you out here.

2. Subtract your liabilities.

   • This includes any debt like mortgages, student loans, or credit card debt.

The number you end up with is your net worth. Even if it's lower than you'd like right now, don't worry. Rome wasn't built in a day, and neither is a strong net worth.

Remember, the goal is to grow this number over time. Our Savings Goals Tracker at BearSavings.com can help you set and reach your financial goals. You're already making smart moves by understanding concepts like net worth, so keep it up!

Just keep swimming, or in my case, keep saving!