Net worth is the difference between everything you own (cash, deposits, investments, property) and all your debts: the key measure of financial health.
Net worth is the difference between the value of everything you own and the total of all your debts. Assets include money in accounts and deposits, government bonds, investments, property and a car; debts include loans, credit cards, instalment plans and borrowings.
Net worth shows your financial position more accurately than income. Someone with a high salary and large loans may have a lower net worth than someone on a modest income with no debts. A negative net worth means debts exceed assets.
It is useful to calculate it once a year and compare it with the previous figure. It is also worth looking at what share is money you can reach quickly: a car or a home raise your net worth but will not help if you need money tomorrow.
In detail, with examples: A personal financial plan: how to build one in 7 steps and stick to it
Emergency fund Diversification Real return
Spotted a mistake or an outdated figure? Let us know and we will check it against the primary source and fix it.
Write to redaktsiia@wm2.com.ua: what is wrong and, if possible, a source with the correct information. In Gmail or your mail app the page address will already be in the message.
Seven steps from net worth to retirement contributions, an inflation-adjusted goal, how much the state pension replaces, a plan for a family on UAH 50,000 and a one-page template.