Net worth is everything you own minus everything you owe. It is the clearest single measure of whether your finances are moving forward, because it captures saving, investing and paying off debt together.
What to include#
| You own (assets) | You owe (liabilities) |
|---|---|
| Bank balances and fixed deposits | Home loan outstanding |
| Mutual funds, shares and ETFs | Car and personal loans |
| EPF, PPF and NPS balances | Credit card dues |
| Gold and property at a fair value | Education loan |
Value assets at what you could realistically sell them for today, not what you paid. Leave out things that lose value quickly and that you would not sell, such as furniture.
How often to check#
Once a quarter is enough. Daily market moves make the number noisy; over several quarters, the trend shows whether your plan is working.