How to Calculate Your Net Worth (And Why You Might Be Richer Than You Think)
When you hear “net worth,” you might picture billionaires with private jets and business empires. But here’s the truth: everyone has a net worth, and knowing yours might surprise you.
For busy professionals who want to build wealth without constantly obsessing over numbers and tedious details, understanding your net worth is one of the simplest ways to get a clearer picture of where you stand and where you’re headed.
Let’s break it down in plain English: what net worth means, how to calculate it (yes, really quickly), and why it might reveal you’re in a better position than you think.
What Is Net Worth, Exactly?
At its core, your net worth is a single number that sums up your financial position.
Net Worth = What You Own – What You Owe
It’s the difference between your assets (like savings, investments and property) and your liabilities (like student loans, credit card debt or a car loan). Think of it like your financial snapshot in a moment in time.
You don’t need to be wealthy for it to be worth calculating your net worth. In fact, it’s often the first step toward building wealth because it gives you clarity about where your money stands and helps you get honest with yourself.
Why Net Worth Matters (Even If You Hate Numbers)
For young professionals juggling work, social lives and personal growth, it’s easy to ignore your finances, especially when it feels like you’re just getting started. But tracking your net worth can help you:
See progress over time: A higher salary or saving a little more each month doesn’t always feel like progress. Net worth gives you a zoomed-out view. If it’s rising, you’re doing something right.
Make better decisions: Should you rent or buy? Invest more or pay off debt? Your net worth can help you weigh tradeoffs and make decisions based on your real financial picture, not just your gut or what’s in your checking account.
Stay motivated: You might be doing better than you think. Maybe your student loans feel heavy, but you’ve been steadily building a solid foundation with those quiet, automatic retirement contributions. That’s something to celebrate and build on.
Spot red flags early: If your net worth is shrinking or staying flat, you’ll catch it early and can course-correct before things spiral.
How to Calculate Your Net Worth in (Hopefully) Under 10 Minutes
You don’t need a fancy spreadsheet or financial advisor to get started. Here’s how to calculate your net worth in three steps:
Step 1: List What You Own (Assets)
Start with the basics – everything you have:
Cash & savings: Your checking and savings accounts
Investments: Shares, ETFs, superannuation/pension funds, crypto
Property: Home or investment property value
Other assets: High-value items like a car or business equity
Be conservative with estimates. You can look up current account balances and property estimates online in minutes.
Pro tip: Don’t forget your retirement account – even if you can’t access it yet. Whether it’s a 401(k), ISA or super fund, it’s still yours and it counts.
Step 2: List What You Owe (Liabilities)
Now total your debts and obligations:
Credit card balances
Student loans
Car loans or vehicle financing
Mortgage
Buy Now, Pay Later debt (Afterpay, Klarna, etc.)
Any other personal loans
Again, use your latest statements or banking app to get an up-to-date figure.
Step 3: Subtract to Find Your Net Worth
Take your total assets and subtract your total liabilities.
Net Worth = Total Assets – Total Liabilities
And that’s it! You now have your net worth. Even if it’s negative (that’s very common in your 20s and early 30s), knowing the number is empowering. It gives you a starting line. And you can't improve what you don't measure.
You Might Be Richer Than You Think
Here’s where it gets interesting.
Many people in their 20s and 30s assume they’re doing poorly financially because they don’t have “extra” money or they’re still paying off debt. But when they actually calculate their net worth, they realise:
Their retirement savings have quietly grown over the past few years
Their emergency savings stack up better than they thought
They’ve paid down more debt than they realised
And if the number is lower than you hoped? Don’t panic.
Getting clear on where you stand is a powerful first step. You can't change what you don't see. Now that you have the full picture, you can start making confident decisions to move forward. Plenty of people build wealth from negative or modest net worth positions. The key is progress, not perfection.
One number won’t tell your whole financial story, but it can be a powerful mindset shift.
What to Do Next
Now that you’ve got your net worth, here are a few simple things you can do with it:
Check in every 3–6 months: No need to obsess, but revisit your net worth periodically. Seeing it grow is motivating, and if it dips, it can alert you early to overspending or debt creep.
Use it to set goals: Want to increase your net worth by $10K this year? Break it down: save $5K, invest $3K, pay off $2K in debt. Small steps, clear target.
Use tools to make it easier: You don’t need to do this manually every time. Apps (like the GLOSS Vault) that consolidate your financial accounts can track your net worth automatically – no spreadsheets needed.
Summary
Your net worth isn’t about being rich. It’s about knowing where you stand so you can take control and grow from there. Whether you’re just getting your finances in order or working toward a bigger goal, this number gives you clarity, direction and peace of mind.
So take 10 minutes today. Grab your account balances. Do the math. You might be closer to financial freedom than you think.
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