Assets − Liabilities = Net Worth
🏦Assets
Assets include cash, bank accounts, investments, retirement accounts, property, vehicles, business value and other items with measurable value.
💳Liabilities
Liabilities include mortgages, credit cards, loans, taxes owed and any other debts you are responsible for repaying.
📈Track Progress
A single net worth number is useful, but the real power comes from tracking it monthly or quarterly to see long-term progress.
Worked Example
If you own 350,000 in assets and owe 190,000 in debts, your net worth is 160,000. If you pay down 10,000 of debt and your investments grow by 10,000, your net worth rises to 180,000.
📈Try nextGrow your net worth over timeModel how investments could increase your future financial position.›