Net worth is the single best measure of your financial health. It equals everything you own (assets) minus everything you owe (liabilities).
Assets Include
- Cash and savings
- Investments (401k, IRA, brokerage)
- Real estate (market value)
- Vehicles and personal property
Liabilities Include
- Mortgage balance
- Student loans
- Credit card debt
- Auto loans
A negative net worth is common for young adults with student loans or new mortgages. The goal is to grow your net worth over time by increasing assets and reducing debt.
Average Net Worth Benchmarks
Net worth varies enormously by age and location, but Federal Reserve Survey of Consumer Finances data offers rough benchmarks: median net worth is around $18,000 for under-35s, $135,000 for 35–44, and rises through peak earning years before retirement. These are medians (not averages, which are skewed upward by very wealthy households), so they're a more realistic comparison point.
How Often to Recalculate
Net worth is a snapshot, not a daily metric — recalculating monthly or quarterly is enough to see a meaningful trend without over-reacting to short-term market swings in your investment accounts. What matters is the trajectory over years, not the exact number on any single day.