Net Worth is no Replacement for Self-Worth but it is Important to Calculate and Track

Net Worth is no Replacement for Self-Worth but it is Important to Calculate and Track

August 19, 2020

“Self-worth takes you further than net worth.”—Matshona Dhliwayo


In the last email we reviewed your ongoing financial health in conjunction with cash flow. Another way to take stock of your finances is to calculate your net worth.
Your net worth is how much money you would have left over if you paid off all of your debts. Net worth equals assets minus liabilities. It is good to review this number at least annually to make sure your net worth is growing. In some cases (especially if you are just starting your career) your net worth may be negative as your debts are higher than your assets.

It is important to review your net worth but it is good to know where you stand and it is a really good starting point to do comprehensive financial planning and future financial goal setting.

There are three steps to calculate your net worth:

 1. List and add up all of your assets:

2. List and add up all of your liabilities:

3. Your Net Worth equals your Total Assets minus your Total Liabilities:


Now you know where you stand. You can make changes to improve your net worth, and you can do this exercise every year to see your progress!
All the best to you on your financial journey!