Assets vs Liabilities
The true measure of wealth
Your net worth is the single most important number to track your overall financial health.
See if you are moving towards your financial freedom goals by tracking net worth over time.
Understand if you are too heavily invested in one asset class (e.g., Real Estate) vs others.
Visualizing your liabilities helps you prioritize paying off high-interest debts.
A rising net worth indicates that your assets are growing faster than your debts.
Banks often look at your net worth statement to determine your eligibility for large loans.
Net Worth is the value of all the non-financial and financial assets you own minus the value of all your outstanding liabilities. It is the most accurate snapshot of your financial position at any given point in time.
Cash, Bank Balance, Investments, Real Estate, Vehicles, Jewelry, etc.
Home Loans, Car Loans, Student Loans, Credit Card Debt, Personal Loans.
Common queries about Net Worth
A common formula is: (Age × Pre-tax Income) / 10. For example, if you are 30 and earn ₹10 Lakhs, your net worth should ideally be around ₹30 Lakhs.