Net worth tracking shows whether you’re actually building wealth, not just earning income. The first calculation takes about 30 minutes, and monthly updates take just 10.
Most people never do it - which is why they have no idea whether they’re making financial progress.
Ready to start? The Net Worth Tracker handles the calculations automatically. Just update your balances.
What Net Worth Tells You
The formula is simple: Net Worth equals Assets minus Liabilities. But the insight goes deeper. Monthly budgets show cash flow - money in, money out. Net worth shows position - the cumulative result of all your financial decisions.
Someone earning $150,000 with a $200,000 net worth and someone earning $60,000 with the same net worth are in similar positions, despite very different incomes. The trend matters more than any single number. A rising net worth means you’re building wealth. A falling one means something needs attention.
Week 1: Your First Calculation
The first calculation takes longer than subsequent updates - expect 30-60 minutes to gather all the numbers. For assets, find your bank account balances, investment account values, retirement account balances, home value (Zillow estimate is fine), and vehicle values (Kelley Blue Book).
For liabilities, find your mortgage balance, auto loan balances, student loan balances, and credit card balances. Add all assets. Subtract all liabilities. That’s your net worth today. Write it down somewhere - spreadsheet, notebook, or the Net Worth Tracker. The number matters less than having it recorded.
First Reactions
Most people have a strong reaction to their first calculation. “It’s negative!” is common with student loans, new mortgages, or early careers. This is normal - track anyway. Negative to less negative is still progress.
“Lower than expected” happens frequently. Most people overestimate their position, mentally counting assets but minimizing debts. Now you know the real number. “Higher than expected” is less common but wonderful. More to work with than you thought.
Month 1: Understanding the Numbers
Net worth changes for four basic reasons. Assets grow through savings and investment appreciation. Assets shrink through spending or depreciation. Liabilities decrease when you pay down debt. Liabilities increase when you take on new debt. Every change falls into one of these categories.
Look at your numbers and identify what moves the needle most. Home equity? Retirement accounts? Student loans? Focus on understanding the big items first. Don’t check daily - market fluctuations and payment timing create meaningless noise. Monthly tracking provides enough resolution to see real trends.
Month 2: Establish Your System
Choosing a tracking method matters less than picking something sustainable. Spreadsheets work well for beginners - complete control, no data sharing, free. Templates like the Net Worth Tracker provide structure without requiring you to build from scratch.
Apps with auto-sync offer convenience if you’re comfortable linking accounts. Empower is free, Monarch costs $99/year, YNAB costs $109/year. Pick a consistent day for updates - first of month, last of month, payday. The specific day matters less than consistency.
Month 3: Develop Insights
After three months, you have enough data for meaningful comparison. Calculate change from last month, average monthly change, and percentage change. These numbers tell a story.
Identify patterns in your data. Does net worth spike on paydays? Drop after quarterly bills? Is the overall trend up, down, or flat? Use these insights to set a 12-month goal: Current Net Worth plus (Monthly Change times 12) equals Projected Year-End. If you don’t like the projection, that’s information about what might need to change.
Beyond 90 Days
Once the habit is established, shift to a sustainable rhythm. Quarterly reviews work well for most people - check each account, update valuations, compare to the same quarter last year. Annual reviews zoom out further - net worth change for the year, percentage growth, what contributed most.
Celebrating milestones keeps the process motivating. First $10,000, paying off a loan, hitting specific targets. Progress deserves acknowledgment. Small wins compound into significant changes over time.
Common Questions
How often should I check? Monthly is ideal. Quarterly works for maintenance. Annually is the minimum.
What if I’m scared to calculate it? The number exists whether you know it or not. Knowing creates power to change it.
Should I include spouse’s assets? For joint planning, yes. You can track individually and combined separately.
How accurate does it need to be? Reasonably accurate. Round to nearest hundred or thousand. Exact cents don’t matter.
Get Started
The Net Worth Tracker has pre-built categories, automatic calculations, and historical tracking. Works in Google Sheets, no complicated setup required.