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Why you should be tracking your net worth

A net worth statement is a snapshot of your assets and liabilities at a given point in time. Simply put, your net worth is what you own, minus what you owe. As advisors, we calculate net worth and use it as a tool to track progress towards goals, develop financial discipline, security and control. A single net worth statement provides little value on its own and is designed to be monitored on an ongoing basis with the objective to increase it over time.


It’s also important to look at your net worth in relation to your age, income, life stage etc. For example, a low or possibly even negative net worth might be the reality for a young person just starting out. Debts from school or a new mortgage are often high with little to no accumulated savings yet. The same net worth for someone say approaching retirement age, however; may be cause for concern.


Download fillable worksheet to calculate your net worth today.


Posted In: Investing Essentials