💵 Want to take control of your finances? It all starts with knowing your net worth—a simple number that tells you how you’re doing financially.
In this article, you’ll learn what net worth is, how to calculate it, what to include, and why it’s so helpful. Don’t worry—we’ve also added a calculator to make it stress-free!
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🔢 Want to calculate your own net worth without breaking out the spreadsheet? Use the calculator below! Just plug in your assets and liabilities—we’ll do the math for you.
💰 What Is Net Worth?
Your net worth is the total value of what you own minus what you owe.
Think of it like this:
Net Worth = Assets - LiabilitiesIf your assets (like savings, investments, and property) are more than your debts (like loans and credit card balances), you have a positive net worth.
If you owe more than you own, you have a negative net worth. And that’s okay—it just gives you a place to grow from.
📦 What Counts as Assets?
Assets are everything you own that has financial value, like:
- Cash and bank balances
- Real estate or home value
- Cars or vehicles
- Retirement accounts (401k, RRSP, etc.)
- Stocks and investments
- Business ownership
- Valuable items (jewelry, collectibles)
🧾 What Counts as Liabilities?
Liabilities are all the debts or financial obligations you owe, such as:
- Mortgage balance
- Student loans
- Credit card debt
- Car loans
- Personal loans
- Outstanding bills or taxes
🧮 Example: Simple Net Worth Calculation
Let’s say you have:
Assets:
- Savings: $10,000
- Home value: $300,000
- Retirement: $50,000
- Car: $15,000
Total Assets = $375,000
Liabilities:
- Mortgage: $250,000
- Student loan: $20,000
- Credit cards: $5,000
Total Liabilities = $275,000
Net Worth = $375,000 – $275,000 = $100,000
✅ Your net worth is $100,000
✨ Why Your Net Worth Matters
- Helps you track your financial progress
- Shows if you’re growing wealth or accumulating debt
- Gives you a big-picture view of your finances
- Motivates you to save and pay off debt
🎯 Pro Tip
Check your net worth every 3 to 6 months to monitor your progress. It’s not about being perfect—it’s about moving forward.