What is net worth?
Your net worth is everything you own (assets) minus everything you owe (liabilities). It's the truest single snapshot of your finances — more meaningful than income, because two people earning the same can have wildly different net worth depending on what they keep and what they owe.
What counts as an asset vs a liability?
- Assets — cash, savings, investments, property, vehicles, gold, a business stake: anything with real resale value.
- Liabilities — mortgage, personal/car/student loans, credit-card balances, and any money you owe.
Tip: list assets at what you could actually sell them for today, and liabilities at the current payoff amount.
Is my net worth good?
There's no universal "good" — it depends on age, income and country. What matters most is the trend: is it rising year over year? A negative net worth (owing more than you own) is common early in life, especially with a mortgage or student loans — the goal is steady progress upward. Recalculate every few months and watch the line climb.
How to grow your net worth
- Pay down high-interest debt (see the debt payoff calculator).
- Invest consistently so assets compound (see compound interest).
- Keep lifestyle costs below income so the gap builds wealth.
Should I include my home?
Yes — count the market value as an asset and the remaining mortgage as a liability. The difference is your home equity.
Is my car an asset?
Include its current resale value. Remember it depreciates, so update it over time.
My net worth is negative — is that bad?
Not necessarily — it's normal with a new mortgage or student loans. Focus on the trend and on shrinking high-interest debt.