Calculate your total net worth by listing all your assets and subtracting your liabilities. Your net worth is the single most important number in personal finance — it tells you exactly where you stand financially. Track your home equity, savings, investments, retirement accounts, and debts all in one place to get a clear picture of your financial health.
Total Assets
₹4,00,000
Total Liabilities
₹1,98,000
Net Worth
₹2,02,000
Net worth is the difference between what you own (assets) and what you owe (liabilities). It is the clearest single measure of your financial health. A positive and growing net worth means you are building wealth. A negative net worth means your debts exceed your assets, and you need a plan to reverse course.
Assets include cash and savings accounts, investment accounts (PPF/EPF/NPS), real estate equity (home value minus mortgage balance), vehicles, business ownership, valuable personal property, and any other items of significant value. Use conservative market values rather than optimistic estimates.
Liabilities include mortgages, car loans, student loans, credit card balances, personal loans, medical debt, and any other money you owe. Include the total outstanding balance, not the monthly payment amount.
There are only two ways to increase net worth: grow your assets (save and invest more) or reduce your liabilities (pay down debt). The most effective strategy is both simultaneously — use a portion of your income to invest while aggressively paying down high-interest debt.
While everyone's situation is unique, common benchmarks suggest having 1x your annual salary saved by 30, 3x by 40, 6x by 50, and 8x by 60. These are guidelines, not rules. Focus on your personal trajectory — is your net worth growing consistently each year?