Personal finance guide
How to Track Your Net Worth
Net worth is a simple snapshot of your financial position: what you own minus what you owe.
The basic formula
Net worth = assets − liabilities.
Assets can include cash, checking and savings balances, investments and property. Liabilities can include credit-card balances, loans and mortgages.
Track the same categories consistently
Choose a consistent list of accounts and update them on a regular schedule. Monthly snapshots are often enough to reveal a trend without turning finance into a daily chore.
Separate deposits from progress
A higher account balance is not always the same as higher wealth. A transfer between two accounts changes neither your total assets nor your net worth. Debt reduction, savings, investment gains and new liabilities affect the bigger picture differently.
Look at the trend, not one number
One month can be noisy. A series of snapshots can show whether your overall position is moving in the direction you want.
Using The Wealth Flow
The Wealth Flow can organize asset and liability accounts and build net-worth history alongside transactions, budgets and cash-flow information.