personal finance

Why You Should Know Your Net Worth

Why You Should Know Your Net Worth

Most adults can quote their salary but couldn't tell you their net worth (assets minus liabilities) within 10%. Tracking net worth monthly converts wealth-building from vague aspiration into measurable progress — and the act of tracking itself improves wealth-building behaviour.

What to include

Assets: cash savings, investment accounts, pension valuations, property at market value, vehicle depreciated value. Liabilities: mortgage outstanding, credit card balances, loans, car finance. Subtract liabilities from assets. That's net worth.

How to track without obsession

Once a month, 15 minutes. Apps like Plum, Snoop, or simple spreadsheet pull data automatically. Watch the trajectory, not the monthly variation (markets fluctuate; trajectory matters). Track for 12 months minimum to see meaningful pattern.

Most users who start tracking net worth find their savings rate increases unconsciously — the act of looking changes behaviour. Five minutes monthly creates measurable financial progress over years.