How do I track my net worth?

To track your net worth, first list all your assets (cash, investments, property, vehicles) and their current values. Then list all your liabilities (mortgages, loans, credit cards). Subtract your total liabilities from your total assets. The result is your net worth. For ongoing tracking, use a spreadsheet or a tool like Delphina that automatically updates values by connecting to your bank accounts.

What is the best way to track net worth?

The best way to track net worth is to use an automated tool that connects to your financial accounts. This saves time and provides real-time updates. Delphina automatically pulls data from your bank accounts, investments, and other sources, giving you an accurate, always-up-to-date picture of your net worth without manual data entry.

How often should I calculate my net worth?

Monthly tracking provides the best balance of motivation and meaningful progress visibility. Weekly can be too noisy due to market fluctuations, while quarterly may miss important trends. Pick a consistent date (like the 1st of each month) and make it a habit. Even small increases deserve celebration!

What assets should I include in my net worth calculation?

Include everything you own that has financial value: cash, bank accounts, investments (ISAs, pensions, shares), property (primary home and investment properties), vehicles, valuable personal items, and business interests. Be conservative with valuations - it's better to understate than overstate your net worth.

Should I include my primary residence in net worth?

Yes, include your primary residence at its current market value minus remaining mortgage. While you need somewhere to live, it's still part of your wealth. Some people calculate both including and excluding primary residence to see their 'liquid' net worth versus total wealth.

How do I value personal possessions like cars or furniture?

Use realistic second-hand values, not purchase prices. For cars, use trade-in or private sale values from sites like Autotrader. For furniture and electronics, estimate what you'd get selling them today. Many people exclude items under £500 unless they're valuable collectibles. Focus on assets that could meaningfully impact your net worth.

What liabilities do I need to include?

Include all debts: mortgage balance, car loans, credit card balances, personal loans, student loans, buy-now-pay-later balances, and any money you owe. Use current outstanding balances, not original loan amounts. Don't forget about interest that accrues between payments.

Is a negative net worth bad?

Not necessarily, especially if you're young or have student loans. Many successful people started with negative net worth. Focus on the trend - is it improving each month? A negative net worth that's moving upward is better than a positive one that's declining. Celebrate progress, not just the absolute number.

How can I increase my net worth faster?

Three main approaches: increase income (side hustles, career advancement), reduce expenses (budget optimization), and invest the difference (compound growth). Even an extra £200/month invested at 7% grows to £25,000 in 10 years. Small consistent actions create significant wealth over time.

Should I include pension savings in net worth?

Yes, include your pension pot value, but be aware it's not accessible until retirement age. Some people track both 'accessible net worth' (excluding pensions) and 'total net worth' (including pensions). This helps distinguish between wealth you can use now versus long-term retirement wealth.

How to Track Your Net Worth: The Complete Guide

A practical step-by-step guide on how to track your net worth, monitor your assets and liabilities, and build lasting wealth

How to Track Your Net Worth: Building Real Wealth

Learning how to track your net worth is one of the most important steps you can take toward financial independence. Your net worth is simply the difference between what you own (your assets) and what you owe (your liabilities). Whether you're just starting out or already building significant wealth, knowing how to track net worth consistently gives you a clear picture of your financial health.

Watching your net worth grow from £10k to £15k is a significant milestone! Every pound of progress deserves recognition because you're building real wealth. With Delphina, tracking your net worth becomes effortless. Our intuitive platform automatically aggregates your assets and liabilities, providing you with real-time insights into your financial health and progress towards your wealth-building goals. This guide will walk you through the essential steps to accurately calculate and monitor your net worth, turning complex financial data into a clear, actionable story.

Before we dive into how to track net worth step by step, let's understand why this metric matters so much for your financial future.

Net Worth = Assets - Liabilities

Simple formula, powerful insights

Step-by-Step Guide

List All Your Assets

Include bank accounts, investments, property, vehicles, and other valuable items. Use current market values, not purchase prices.

List All Your Liabilities

Include mortgages, loans, credit card balances, and other debts. Use current outstanding balances.

Calculate Your Net Worth

Subtract total liabilities from total assets. This gives you your current net worth snapshot.

Track Regularly (and Automatically with Delphina)

Update your net worth monthly or quarterly to see trends and measure progress. Delphina automates this by connecting to your accounts, giving you real-time, effortless tracking.

Leverage Tools for Insights

Tools like Delphina not only automate tracking but also provide visualisations, trends, and personalised insights to help you make informed financial decisions and reach your goals faster.

Common Asset Categories

Liquid Assets

•Cash and savings accounts
•Current accounts
•Money market funds

Investment Assets

•ISAs and SIPPs
•Stocks and shares
•Property and real estate

Why Track Net Worth?

Financial Health Check

Net worth shows your overall financial position better than income alone.

Progress Tracking

See how your wealth grows over time and adjust your strategy accordingly.

Goal Setting

Set realistic financial goals based on your current position and desired growth.

Path to Financial Independence

Clearly visualize your journey towards financial freedom and retirement.

Informed Decision-Making

Make smarter financial choices with a clear understanding of your complete financial picture.

Start Tracking Your Net Worth

Use our tools to automatically track and visualise your wealth growth.

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