Net Worth Calculator
Track your assets and liabilities, and project your financial growth over time.
Understanding Net Worth
Net worth is the difference between your assets (what you own) and your liabilities (what you owe). It's a key measure of your financial health and progress toward financial independence.
Components of Net Worth
- Assets: Everything you own that has value, including cash, investments, real estate, vehicles, and personal property.
- Liabilities: All your debts and financial obligations, such as mortgages, car loans, student loans, and credit card debt.
- Net Worth = Assets - Liabilities: This is your true financial position at any given time.
Strategies to Increase Net Worth
- Increase Income: Look for ways to earn more through career advancement, side hustles, or passive income streams.
- Reduce Expenses: Create a budget and identify areas where you can cut spending to increase your savings rate.
- Pay Down Debt: Focus on eliminating high-interest debt first, then work on other liabilities.
- Invest Wisely: Put your money to work through diversified investments that can grow over time.
- Build Emergency Fund: Maintain 3-6 months of expenses in liquid savings to avoid going into debt during emergencies.
Net Worth Milestones
- Positive Net Worth: When your assets exceed your liabilities, even if just by a small amount.
- Emergency Fund: Having enough liquid savings to cover 3-6 months of expenses.
- Debt Freedom: Eliminating all non-mortgage debt.
- Retirement Readiness: Having enough assets to support your desired lifestyle in retirement.
- Financial Independence: Having enough assets to support your lifestyle without needing to work.