# Net Worth: How to Work Out What You're Really Worth, and How Often to Check

> Net worth is the one number that sums up the whole picture: assets minus liabilities. How to compute it properly, how often to review, and the common mistakes to avoid.

- Canonical URL: https://www.shavve.io/en/articles/net-worth-guide
- Category: Savings & investing
- Published: 2026-08-26 · Updated: 2026-10-13
- Reading time: 6 min
- Language: English
- Shavve - שווה — https://www.shavve.io/en

## The short version

- Net worth is assets minus liabilities, and the trend matters more than the number.
- Count everything: pension and study funds too, and the small debts as well.
- Separate liquid assets from locked ones, since they serve different purposes.
- A monthly or quarterly review is enough. Checking daily only adds stress.
- Valuations of a home and a car are estimates. Keep them conservative.

If one number sums up your financial position, it is net worth. It doesn't show what you earn or what you spend, but what is left once everything you owe is set against everything you own. Those who track it know whether they're moving forward, even when the salary looks the same month after month.

## Assets and liabilities: what to count and where

**Assets**
- Balances in current, savings and deposit accounts.
- Pension, study fund and provident fund balances.
- Investments: securities, mutual funds, crypto.
- A home you own, at a careful valuation, and a car at market value.

**Liabilities**
- The outstanding mortgage balance.
- Loans: bank, non-bank, from family and friends.
- Credit card balances and overdraft.
- Debts to authorities and suppliers, and taxes not yet paid.

> **Key point — The formula**
> Net worth = total assets minus total liabilities. It can be negative, especially early on or after buying a home with a large loan, and that's not a sign of failure. What matters is the direction.

## How to compute it, step by step

1. **List every account and asset** — Banks, cards, pension, study fund, provident funds, investments and physical assets. Don't forget old funds from previous employers.
2. **List every debt** — Mortgage, loans, credit and balances. Record the current balance rather than the original amount.
3. **Value illiquid assets conservatively** — A home and a car have no fixed price list. Think in a range, and use the cautious end.
4. **Compute and classify** — Total net worth, and also liquid net worth: the assets you could use in the short term, excluding pension and property.
5. **Write down the date** — The number is most useful compared with itself over time.

*Take a snapshot of your net worth (on the website: an interactive calculator)*

## Review rhythm and common mistakes

- **First time** — A snapshot: One evening to gather everything. That's the hard part, after that it's easy.
- **Monthly** — A short check: Update balances and debts. Ten minutes is enough.
- **Quarterly** — Look at the trend: Is your net worth rising? Because of what: saving, returns or paying down debt?
- **Once a year** — Re-evaluate: Home and car value, pension and study fund, and goals for the coming year.

- **Forgetting the pension and study fund.** They are often a big part of your wealth, but they're locked. Show them separately.
- **Counting twice.** A joint account with a partner, or a transfer between accounts, can be counted twice.
- **Valuing a home on hope.** An asking price is not a transaction price. Keep the estimate conservative.
- **Ignoring small debts.** Ten small charges is also a sum.
- **Fixating on the number instead of the trend.** One down month in the market is not news.

**Net worth checklist**

- [ ] I've listed all bank accounts, cards and savings.
- [ ] I've added pension, study fund and provident funds, including old ones.
- [ ] I've listed all debts and loans, with current balances.
- [ ] I've valued home and car conservatively, without wishful thinking.
- [ ] I've separated total net worth from liquid net worth.
- [ ] I've set a reminder to review monthly or quarterly.

**Does my home count as an asset?**
Yes, but it isn't liquid: you can't use it without selling or borrowing against it. So it's worth showing separately from liquid assets.

**What if my net worth is negative?**
That's common, especially after buying a home or early in life. The direction matters more than the sign: if debt is falling and savings are rising, you're moving the right way.

**Should I include a pension I can't withdraw?**
Yes, since it is part of your wealth, but separate liquid from locked wealth so you don't mistake what is available to use.

**How often should I check?**
Monthly or quarterly. Checking too often amplifies noise rather than the picture.

**How does this work for a shared household?**
With joint accounts it's easy to count twice. Shavve neutralises duplicates when partners are linked in the same household, so the total is right.

**Net worth that updates itself** Shavve connects your accounts, pension and investments, read-only, and shows assets and liabilities as a trend over time. Join the waiting list.