How to Calculate your Net Worth

Are you looking to calculate your Net Worth because of one of these reasons?

  • You don´t really know where your money goes every month.
  • Not really knowing what you have of value or debt.
  • Wondering where you “should” be and comparing yourself to others.
  • A feeling you´re not in control.
  • Thinking you should be doing more but not knowing what that “more” is.

If you want to know how much you´re worth, calculating your Net Worth is like taking a snapshot of where everything is right now, financially speaking.

On the other hand, it can be so much more than just a spreadsheet of numbers.

Keeping track of this number can change your life, and the lives of your family members. If you’re just beginning to get your financial house in order, having a Net Worth number can push you toward success.

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The Magical Effect

I stumbled across other bloggers sharing their Net Worth journey and on a whim spent a few minutes calculating my own.

My mind was blown!

It sounds crazy, but there are so many things that will make more sense when you know where you stand financially. Once I saw my (lack) of progress, I was determined to change!

I knew a high Net Worth = more options, more security, more freedom.

Like all moms I want to do the best I can for my family so i started Side Hustling and looking for ways to make money online.

We started at $296,000 in January 2018 and suddenly pushed it to $661,000 in 3 years $920,000 in under 4 years! 😃

Never in a billion years would I have though that in less than 4 years we´d be close to millionaires but that´s the power of tracking your finances.

I hope you acknowledge that I´m showing my numbers not to brag but because I understand so well the frustration at feeling utterly lost with your finances.

If you´d like to see more of our journey you can see all our Net Worth updates here.

What is Net Worth?

It´s your assets minus your liabilities.

Simply put, it´s the stuff you own minus what you owe.


There are many metrics you could use to track your finances but without a doubt your Net Worth is the single most important number you must know to build wealth.

It is more important than how much you earn or spend or your monthly budget.

And no! it´s not just a thing for rich people!


Because you can earn a good wage but if you´re not using it correctly your Net Worth can stay stagnant for years, or worse decline!

The good news? Someone on a low salary can build a high Net Worth just by being in control of their money.

Trust me, I know!

To get started you need to answer two questions:

  1. What should I include in my Net Worth statement?
  2. Which tool should I use to track it?

Keep reading to start started.

What to Include


An asset is anything that has value that you can use to make money or sell.

This could be real estate, stocks, cash in the bank, savings accounts.

It´s important to note: you don´t have to own the thing outright, say you have a partially paid off property with some debt still owning. The total market value goes in your “assests” list. Whilst the remaining mortgage debt goes in your “liabilities” list.

  • All owned properties, including your primary residence
  • All investment accounts, pension funds, saving plans, hard cash
  • Businesses you own


Your liabilities are basically your debts. Yeah, I know, it´s a pretty sucky list.

This list represents all of the money you owe to someone, whether that´s the bank, a car dealer, a friend or a business partner.

Liabilities need to be listed regardless of when the money is due to paid. Whether you have to pay the debt in a month or a year it´s still money you owe.

  • Mortgages
  • Car loans, bank loans, personal loans
  • Credit card debt

What Not to Include

This part is up for discussion, some people choose to include every last spoon in their net worth but I suggest you do not include depreciating consumer purchases like cars, mobile phones and golf clubs.

That said if you have a classic Austin Martin or a precious piece of jewellery or art work of value I would include it.

The important thing is to make a decision about what to include and stick to it forever!

You´re only fooling yourself if you add an item in one month to bump up your numbers!

How do I Calculate my Net Worth?

I think you’ll be surprised at how easy it is to calculate your Net Worth.

To see your Net Worth right now I´ve made you a little calculator where you can go ahead and punch your numbers in:

However it´s a good idea to save every Net Worth calculation you make.

There are a few ways to go about this, either manually or through an online platform like:

Personally I have always used a simple Excel chart and it works great for me.

Updating my numbers takes about 5 minutes a month.

Ahhhh, my Net Worth came out NEGATIVE!

When you first calculate your Net Worth you might get a shock and see a negative number!

Don’t panic!

This is not as bad as it seems and happens to many people especially when you´re younger.

Remember ANYTHING that increases your Net Worth is fantastic! So paying off debt is as important as saving and investing.

What to do Once you Know your Net Worth

There´s no point in calculating your Net Worth then chucking it in a drawer and forgetting about it!

It´s an opportunity to compare what you own and what you owe; then make monthly adjustments to ensure that the two numbers are moving in the right direction.

This is how it works…

Once a month, on your own or with your partner spend about an hour reviewing your Net Worth statement, comparing it to the previous month’s.

Re-evaluate your goals and that your spending and investments are on track.

It might seem like a lot of time, but the benefits are well worth it.

Want to see how well it works? Since we started tracking our net worth a few years ago, my husband and I have fully paid off our mortgage!

NOW IT¨S YOUR TURN! – Calculate your Net Worth today and let me know how it goes!

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