Net worth is the difference between your total assets (what you own) and your total liabilities (what you owe). It's an important financial metric because it gives you a comprehensive view of your financial health at a specific point in time. Tracking your net worth helps you understand if you're building wealth over time or falling deeper into debt.

Financial experts typically recommend calculating your net worth every 3-6 months. This frequency allows you to track meaningful changes without becoming obsessive about short-term fluctuations. However, you might want to recalculate after major financial events like buying a home, receiving an inheritance, or paying off a significant debt.

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Generally, you should include possessions that have significant value and could be sold if needed. This typically includes your home, vehicles, valuable jewelry, art, and collectibles. Everyday items like clothing and furniture are usually excluded unless they have exceptional value. Be realistic about resale values rather than using purchase prices or replacement costs.

A negative net worth means your liabilities exceed your assets, which is common for young adults with student loans or recent graduates. It's not necessarily a cause for alarm, especially if you have good income potential. Focus on gradually reducing debt while building assets. Creating a budget, increasing income, and avoiding new debt can help improve your net worth over time.

Net worth varies widely based on age, income, location, and other factors. While it can be tempting to compare yourself to others, it's more productive to focus on improving your own financial situation over time. Your personal financial goals and circumstances are unique, so measuring progress against your past self is often more meaningful than comparing to others.

Yes, retirement accounts like 401(k)s and IRAs should be included in your net worth calculation as they are assets you own. However, keep in mind that these accounts may have penalties for early withdrawal and future tax implications. Some financial planners suggest calculating both your total net worth and your liquid net worth (excluding retirement accounts and other illiquid assets).

For your home's value, you can use recent comparable sales in your neighborhood, online home value estimators, or a recent appraisal if available. It's important to be realistic rather than overly optimistic. Remember to list your mortgage separately as a liability, not as a deduction from your home's value.

Currently, this calculator doesn't have an export feature. If you'd like to keep a permanent record of your net worth at different points in time, we recommend taking screenshots or manually recording the totals in a spreadsheet or financial journal.

Net worth includes all your assets minus all your liabilities. Liquid net worth only counts assets that can be quickly converted to cash without significant loss of value. For example, your home is included in net worth but not in liquid net worth because selling a house typically takes time and involves transaction costs.