Net worth: the only number that really matters
Income is what you make. Net worth is what you keep. Track the latter monthly.
Last reviewed: · Reviewed by the Money Scale editorial team
Net worth = everything you OWN (cash, investments, property value, vehicle value) MINUS everything you OWE (mortgage, student loans, credit cards, car loans). It's a single number that captures your real financial position.
1× / 3× / 8×
Salary saved by 30 / 40 / 50
A common (aggressive) Fidelity benchmark. Adjust to your goals.
Why income lies
- •A $200K earner with $190K of spending has near-zero net worth growth.
- •A $60K earner saving $15K/year is building real wealth.
- •Lenders, ego, and lifestyle reward income. Net worth rewards behavior.
Pick the same day every month, list assets and liabilities in a spreadsheet, plot the line. The trend (up vs flat) tells you everything you need to know.
Takeaway
Calculate your net worth this weekend. Re-check on the 1st of every month. The line going up is the only scoreboard that matters.
What's the formula for net worth?