Milvionne Chery Copeland, Writer
@milvionne_copeland
To track your net worth, start by adding up all your assets and all your debt, then subtract your total debt from your total assets to see your net worth, and repeat this process regularly. Doing this consistently, with a spreadsheet or a net-worth tracking app, allows you to see how your net worth changes over time.
The best net-worth tracking app is WalletHub since you can sync your financial accounts and have your net worth automatically update when your debt levels or asset values change. WalletHub also provides you with your WalletScore, which factors in your credit, spending, how prepared you are for emergencies and your ability to retire at a reasonable age with sufficient funds to determine how financially healthy you are.
How to Track Your Net Worth
1. Add up your assets.
You need to add up the value of everything you own. This should include:
- Money you have in your bank accounts
- Market value of any real estate you own
- Value of your investments
- Value of personal property, such as your car and jewelry
- Cash value of life insurance policies
- Value of your retirement account
2. Add up your debts.
Calculate the total amount that you owe to others. You should include the balances you owe on your:
- Mortgage
- Student loans
- Car loan
- Personal loans
- Credit cards
3. Calculate your net worth.
Subtract your total debt from your total assets to determine your net worth.
4. Choose a tool to track your net worth.
Figure out whether to use a spreadsheet or a net-worth tracking app to track your net worth over time. With a spreadsheet, you will have to manually input your information and update your account balances periodically to calculate your net worth.
The best net-worth tracker apps, such as WalletHub, can make it more convenient to track your net worth since you can sync your bank accounts, credit cards, loans, and investments to have your account balances and net-worth values updated automatically. WalletHub also has features that can help you pay off debt and save money for the future, so you can increase your net worth.
5. See how you can improve your net worth.
Analyze your net worth to see if there are things you can do to improve it. For instance, you could pay down some of your debt or look for ways to save more money to increase the total value of your assets. You can also compare your net worth to the median net worth for people in your age group to determine whether you are falling behind your peers or doing relatively well financially.
6. Monitor your net worth over time.
Calculate and review your net worth at least once or twice a year to see if your net worth is increasing. You should also check if any of the changes you made recently, whether that’s paying off debt or increasing your savings, have produced positive results. If things aren’t headed in the right direction, you’ll need to reassess your financial plan.
To learn more about tools that can aid in your efforts, check out WalletHub’s picks for the best net-worth tracker apps.
People also ask
How is net worth calculated?
John's answer is right on!
I'd just add that this is one are where most financial advisors fall short.
If you're trying to build wealth (which IS your net worth), can you measure it in an objective and ongoing way? And get data that is real, not "well, I think it's worth $xxxx..."
There are good software platforms available to do this easily and accurately. Most advisors only look at a piece, like the public...
read full answer by Tommy Sikes, Financial PlannerWhat should my net worth be at 40?
Your net worth should be around $135,000 at 40 years old, as that is the median reported by the Federal Reserve. Your net worth is your overall financial value, calculated by subtracting your liabilities (e.g. credit card debt, mortgages, student loans) from your assets (e.g. savings, investments, real estate).
Typical Net Worth by Age
| Age | Average Net Worth | Median Net Worth |
How do I save a million dollars in 10 years?
To save a million dollars in 10 years, first analyze your finances to see what’s possible with your current income, savings, and investment strategy. Then, create a financial plan that lays out the steps you need to take to get to $1 million, such as cutting expenses and adjusting your investment mix.
Saving $1 million in 10 years equates to saving $72,378 each year, assuming a 7% annual rate of return on your investments....
read full answer by Milvionne Chery Copeland, WriterDid we answer your question?
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