How to Track Your Net Worth (And Why You Should Start Today)

You can't manage what you don't measure. Your net worth — assets minus liabilities — is the single number that tells you exactly where you stand financially. People who track their net worth consistently accumulate wealth faster. Here's how to start.

What Is Net Worth?

Net Worth = Total Assets − Total Liabilities. Assets are everything you own with monetary value. Liabilities are everything you owe. A positive net worth means you own more than you owe. Negative net worth is common early in life — the goal is to grow it steadily.

What to Include as Assets

• Checking and savings account balances
• Investment and brokerage accounts
• Retirement accounts (401k, IRA, pension)
• Home equity (current value minus mortgage owed)
• Vehicle value (use Kelley Blue Book)
• Cash value of life insurance
• Business ownership value

What to Include as Liabilities

• Mortgage balance
• Car loan balance
• Student loan balance
• Credit card balances
• Personal loan balances
• Any other money you owe

How Often to Track

Monthly tracking is ideal. It takes about 15 minutes once your accounts are listed. Many people use a simple spreadsheet. Apps like Personal Capital (now Empower) or Mint connect to your accounts and calculate net worth automatically.

What's a Good Net Worth?

A common benchmark: your net worth should equal your age multiplied by your pre-tax income, divided by 10. At 35 earning $60,000, the target is $210,000. This is a rough guide — the most important thing is consistent growth, not hitting a specific number.