Glossary -> Net Worth
Net Worth
Net worth is calculated as the total of all your assets less the total of all your liabilities.
For an individual, the assets would include:
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Liabilities would include:
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Here is an example of a summary of net worth:
Net Worth Summary |
|
| Assets | Value |
| House | $800,000 |
| Vehicle | 8,000 |
| RRSPs | 300,000 |
| TFSAs | 46,500 |
| Chequing account | 1,000 |
| Total assets | $1,155,500 |
| Liabilities | Value |
| Mortgage | $450,000 |
| Car loan | 4,000 |
| Credit card debt | 2,000 |
| Total liabilities | $456,000 |
| Net worth | $699,500 |
It's a good idea to do a net worth summary once in a while, such as annually, to see if you are progressing on the road to financial independence. For more on how to become financially independent, see our Free in 30! articles.
See also our Net Worth Calculator.
Tax Tip: Check your net worth occasionally to monitor your progress toward financial independence!
Revised: October 26, 2023