How to Calculate and Track Your Net Worth as an American

Income tells you what you earn. Net worth tells you where you actually stand. It's the single most comprehensive measure of financial health available — and most Americans have never calculated it.

Net worth = Assets - Liabilities

Simple formula, slightly tricky in practice because people either over-count or under-count certain items.

What counts as an asset

• Checking + savings accounts (current balance)
• Investment accounts (current market value — not what you put in)
• 401(k), IRA, and other retirement accounts (current value)
• Home (current market value, not purchase price)
• Vehicles (current value, not purchase price)
• HSA balance

What counts as a liability

• Mortgage remaining balance
• Student loan balance
• Auto loan balance
• Credit card balances
• Personal loans
• Any other outstanding debt

How often to track net worth

Monthly tracking leads to anxiety and reactive decisions. Annual tracking misses important trends. Quarterly is the sweet spot — enough frequency to catch problems, not so frequent that normal market volatility triggers panic.