Step 1: list your assets
Start with major assets such as bank balances, fixed deposits, mutual funds, stocks and other investments or valuable assets you want to include consistently. Use current values where practical.
Step 2: list your liabilities
Add the balances of loans and other debts that you want included in the same snapshot. Keep the definitions consistent each time you calculate net worth.
Step 3: subtract liabilities from assets
The basic formula is Net Worth = Total Assets − Total Liabilities.
Step 4: track the number over time
A single net-worth figure is less useful than a series of consistent snapshots. Monthly or quarterly reviews can show whether the overall financial position is moving in the direction you expect.
Put it into practice with FolioTrack
Once you know what you want to measure, the next step is keeping the information organised so you can review it again later.