Here’s Why You Always Want to Know Your Net Worth
Here’s Why You Always Want to Know Your Net Worth, According to a Financial Expert
August 25, 2025 By Jordan Rosenfeld
How do I calculate my net worth, and why does it matter?
If net worth sounds like something only the uber-rich have to think about, it’s time to think again. Everyone has a net worth — though some are certainly higher than others — but you might be surprised to learn that you’re worth more than you think. More importantly, your net worth is one of the clearest snapshots of your overall financial health.
Dr. Preston D. Cherry, a financial planner who calls himself “a life designer in the world of wealth,” is the founder of Concurrent Wealth Management and author of “Wealth in the Key of Life.” He explains how to calculate your net worth, why it matters more than you might realize, and how tracking it over time can help you achieve your biggest financial goals.
Do This Simple Math
Calculating your net worth doesn’t require any complicated technology or sifting through boxes of paperwork; it’s a lot simpler than people think, Cherry said. “It’s just what you own minus what you owe.” To calculate your net worth:
Add up your assets: This includes cash, retirement and brokerage accounts, investments, your home and even business equity if you have it.
Then subtract your liabilities: These include credit card balances, student loans, auto loans, your mortgage or any other outstanding debts.
A Snapshot of Your Financial Story
Once you calculate that number, Cherry encouraged a mindset shift: don’t think of it as a static figure, but as “a snapshot of your financial story.” In his words, “It gives you a sense of where you are and a guide to where you’re going.”
Think of your net worth as your personal financial narrative. “It tells you where you stand, how far you’ve come, and your aspirational future,” Cherry said. In other words, don’t use it to compare yourself to others, but to measure your progress against your own goals.
Tracking your net worth regularly, such as quarterly or annually, can reveal whether you’re headed in the right direction. It can also highlight blind spots, like lingering debt or underutilized savings opportunities, and bring clarity to future decision-making.
A Reflection of Your Financial Choices
Another way to think of net worth, according to Cherry, is as “a reflection of how your financial choices support your well-being.” If your net worth is on the low side, that may show up as struggling to make ends meet or falling short of your goals.
TO READ MORE: https://www.gobankingrates.com/net-worth/worth-more-than-you-think-wealth-expert-calculate-net-worth/?hyperlink_type=manual