What Is Net Worth and How Do You Grow It?
Assets minus debts is the one number that shows your progress. Learn how to calculate it and the levers that raise it.
Net worth is everything you own minus everything you owe. It is a better progress score than income.
A simple example
Assets of $250,000 (home equity, savings, investments, car) and debts of $190,000 give a net worth of $60,000. Track it every quarter or year, and look at the trend, not one reading.
Three levers
- Earn more or cut costs so you can save more.
- Pay down high-interest debt, which is a guaranteed return.
- Invest steadily and let compounding work.
Do not compare with others
Net worth depends on age, income and starting point. Compare yourself with your own past.
Check yours
Calculate it with the net worth calculator, get an overall score from the financial health score calculator, and set targets with the savings goal calculator.
This article is general education, not financial advice.