Your net worth is simply what you own minus what you owe. Add up all assets (cash, investments, property, vehicles) and subtract all liabilities (mortgages, loans, credit card debt). Track it monthly to measure real financial progress.
Bottom line:
Key Takeaways
- Net worth = total assets minus total liabilities
- Include all accounts: checking, savings, retirement, brokerage, crypto, real estate equity
- Don't forget liabilities: mortgage balance, student loans, car loans, credit cards
- Track monthly — the trend matters more than any single number
- The median net worth for Americans under 35 is about $39,000
Net worth is the single best measure
Net worth is the single best measure of your overall financial health. Unlike income, which only shows how much money flows through your hands, net worth shows how much you've actually kept and grown. A high income with high debt can mean a lower net worth than a moderate income with disciplined saving.
Tracking net worth over time reveals whether you're actually making progress. You might feel broke while paying off debt, but if your net worth is increasing each month, you're winning. It's the scoreboard of personal finance.
Assets are everything you own that has
Assets are everything you own that has monetary value. Start with liquid assets: checking accounts, savings accounts, money market accounts, and cash. Add investment accounts: 401(k), IRA, Roth IRA, brokerage accounts, HSA, and any crypto holdings at current market value.
Include property: your home's current market value (use Zillow or Redfin as estimates), vehicles (use Kelley Blue Book), and any other valuable property. Some people include personal property like jewelry or collectibles, but only if you'd actually sell them and they have verifiable value.
Liabilities are everything you owe
Liabilities are everything you owe. Include your mortgage balance (not your home's value — that's an asset), car loan balance, student loan balance, credit card balances, personal loans, medical debt, and any other outstanding debts.
Check your credit report for a complete picture — you might have forgotten about a small balance or old debt. Include both the current balance and the interest rate for each liability, which will help you prioritize payoff order.
Subtract total liabilities from total assets
Subtract total liabilities from total assets. If the number is positive, congratulations — you have a positive net worth. If it's negative, don't panic. Many young adults have negative net worth due to student loans, and that's a normal starting point.
What matters most is the direction. If your net worth increases by even $500-1,000 per month, you're on the right track. Over time, compound growth on investments and debt payoff will accelerate the growth dramatically.
According to the Federal Reserve's Survey of
According to the Federal Reserve's Survey of Consumer Finances, median net worth by age group: under 35 is $39,000, 35-44 is $135,600, 45-54 is $247,200, 55-64 is $364,500, and 65-74 is $409,900. These are medians — the averages are much higher due to wealthy outliers.
If you're below the median for your age, focus on the gap between income and spending. If you're above it, consider whether your asset allocation is optimized for growth. Either way, benchmarks are reference points, not judgments.
Free tools like Empower (formerly Personal Capital),
Free tools like Empower (formerly Personal Capital), Rocket Money, Empower Personal Dashboard, and Monarch Money can automatically aggregate (note: Mint by Intuit shut down March 23, 2024) all your accounts and calculate net worth in real time. For privacy-conscious people, a simple spreadsheet works just as well — update it on the first of each month.
The key is consistency. Whether you use an app or spreadsheet, checking in monthly keeps you accountable and motivated. Seeing the upward trend — even when it's slow — is powerful reinforcement for good financial habits.
How We Evaluated
Net worth benchmarks from the Federal Reserve's 2022 Survey of Consumer Finances, inflation-adjusted to 2026. Tracking methodologies based on CFP Board best practices.Frequently Asked Questions
How long does this process typically take?
It depends on your starting point. Most people can complete the initial steps within days, with full results visible within weeks to months.
Do I need special tools or accounts to get started?
We cover everything you need in the article. In most cases, you can start with tools you already have.
What is the most important first step?
Start by assessing your current situation. The article walks you through this assessment and provides a clear action plan.
What if I make a mistake along the way?
Most financial decisions are reversible or adjustable. We highlight common pitfalls so you can avoid them.
Should I consult a professional?
For complex or high-stakes decisions, a certified financial planner can be valuable. For straightforward steps, most people can proceed on their own.
Editorial Disclosure: WalletGrower may earn a commission from partner links. Our editorial content is independent and not influenced by advertisers. We research products independently and only recommend what we believe in. Updated April 2026.