Net worth is the single best snapshot of financial health. It equals everything you own minus everything you owe.
What to include
Assets: cash, savings, investments, retirement accounts, home equity, vehicles and other valuable property at realistic resale value. Liabilities: mortgage, auto loans, student loans, credit cards and any other debts.
How to use it
Track it quarterly or annually. A rising number shows progress, even if the market dips. Compare with age benchmarks cautiously, since spread is wide. Also track net worth excluding your home and cars, which shows investable wealth.
Ways to grow it
Raise income, lower expenses, pay down high-interest debt and invest consistently in diversified assets. Avoid assets that depreciate quickly financed with debt.
Try the numbers
Use our Net Worth Calculator to see this in practice. With its default example (Cash & savings: $15,000; Taxable investments: $30,000; Retirement accounts: $120,000), it shows net worth: $275,000. Adjust the inputs to match your situation.
Key takeaways
- Net worth = assets − liabilities.
- Track it regularly to see real progress.
- Growth comes from saving, investing and debt reduction.
This article is for general education and is not personalized financial, tax or legal advice. Rules and limits change; confirm current figures with official sources such as IRS.gov, SSA.gov and StudentAid.gov, or consult a qualified professional. © 2026 FinanzCalc.