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A house is an asset, both in accounting terms and personal terms. On the personal level it shelters your family and stores your stuff. Financial the house increases your net worth.

Money owed is a liability. Property taxes, mortgage payments, utilities and other services you owe money for are liabilities.

Along these lines, I have a question. How do you figure your total net worth? I believe you add up the equity in your house, worth of any stocks or bonds and bank accounts but do you then subtract any debts? Or does that total have a different name? Also I understand that liquid net worth would be money you can get to quickly but would 401K or IRA money be included in that? After all you can theoretically get to that money (401K loan/ IRA early withdrawal).

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