Your net worth is a better measure of financial health than your income – it’s what you own minus what you owe.
Someone with a modest income who saves consistently can have a higher net worth than someone with a high income who spends everything.
Calculate your net worth annually to track your progress toward financial goals.
Include all assets (cash, investments, home equity, valuable possessions) and all debts (mortgages, credit cards, loans).
Focus on increasing assets and decreasing liabilities to build wealth over time.
Don’t get discouraged if your net worth is negative when you’re young – student loans and mortgages are common.
What matters is that your net worth trends upward year after year through consistent saving and investing.
