How to track your net worth over time
How to Track Your Net Worth Over Time
Your net worth is more than just a financial figure—it's a snapshot of your overall financial well-being. Tracking it regularly helps you understand how your assets and liabilities evolve and whether you're building real wealth over time.
In 2025, with interest rates remaining high and inflation stabilizing, more Americans are looking at net worth as a better indicator of financial progress than income alone. According to a recent NerdWallet report, millennials and Gen Z are facing slower net worth growth due to rising housing costs and increased borrowing.
1. What Is Net Worth?
Your net worth is calculated by subtracting your total liabilities from your total assets. Assets can include cash, investments, retirement accounts, and property. Liabilities include credit card debt, student loans, car loans, and mortgages.
2. Why You Should Track It
Many people focus only on income or monthly budgets, but that doesn’t give a full picture. You could earn a six-figure salary and still have a negative net worth. Tracking your net worth gives insight into how well you're actually growing your financial base.
3. How to Start Tracking
Make a list of your current assets and estimate their value. Do the same with your debts. Subtract liabilities from assets to get your net worth. Use a spreadsheet or personal finance app to update it monthly or quarterly. Over time, you’ll see patterns that highlight what's working—and what's not.
4. Adjust Based on Life Changes
Your net worth will fluctuate, especially during major life events like buying a home, changing jobs, or paying off loans. Tracking helps you stay realistic and responsive rather than reactive.
If you're building new financial habits, tracking your net worth is a simple yet powerful step. It creates accountability, motivation, and long-term clarity.
Want to build even stronger financial routines? Learning which habits have the biggest impact can help guide your journey.
