SampattiTrackYour net worth is the total value of everything you own (assets) minus everything you owe (liabilities). To track it, list your accounts, record each balance at its current value, subtract the debts, and repeat on a regular schedule, such as once a month, so you can watch the trend.
The formula
It is the same equation that sits at the heart of double-entry bookkeeping. A positive number means you own more than you owe; a negative one, common early in a career or after taking a large loan, means the opposite. Neither is a verdict; it is a starting point.
What counts as an asset
- Bank accounts, wallets and cash
- Fixed and recurring deposits
- Mutual funds, stocks and ETFs, at current market value
- Gold you hold as an investment, at current market value
- Retirement balances such as provident fund or pension accounts
- Property, if you want it in the picture, at a realistic market estimate
- Money lent to others that you expect to get back
Everyday items like furniture, clothes and phones are usually left out: they lose value and are not things you would plan to sell. Some people include a vehicle at a depreciated value. Choose a rule and keep it consistent.
What counts as a liability
- Credit card balances, including purchases not yet billed
- Home, car, education or personal loans (the outstanding principal)
- Money you owe to friends or family
- Unpaid taxes or bills you know are due
Use the amount you would need to pay to clear the debt today, not the total of all future EMIs, which includes interest you have not incurred yet.
Handling loans and credit cards
A loan reduces your net worth by its outstanding principal. When you pay an EMI, the principal portion lowers the liability (net worth unchanged, since cash falls by the same amount), while the interest portion is an expense that lowers net worth. That is why a long loan can feel slow: early EMIs are mostly interest.
Credit cards need care. A purchase on a card immediately raises the liability. If you only look at bank balances, you will think you are richer than you are until the bill is paid. Include the card's current outstanding amount, not just the last statement. For details, see credit card accounting.
Investments at market value
Record investments at what they are worth now, not what you paid. A fund bought for ₹3,00,000 that is worth ₹4,10,000 contributes ₹4,10,000. Using cost hides both gains and losses and makes your net worth drift from reality. Because markets move daily, expect your number to move too; that is normal, not a bookkeeping error.
A worked example
| Item | Amount |
|---|---|
| Bank accounts | ₹1,20,000 |
| Mutual funds (market value) | ₹4,10,000 |
| Gold (market value) | ₹80,000 |
| Provident fund | ₹3,00,000 |
| Total assets | ₹9,10,000 |
| Credit card outstanding | −₹18,000 |
| Car loan outstanding | −₹1,82,000 |
| Total liabilities | −₹2,00,000 |
| Net worth | ₹7,10,000 |
How often should you check?
Once a month is enough for most people. Pick a fixed date, such as the first of the month or the day after payday, so that figures are comparable. Weekly checks tend to track market noise and can make you anxious; yearly checks miss problems. If you also review at the end of each financial year, you get a natural annual comparison.
Why the trend matters more than one number
A single net worth figure is hard to judge. Is ₹7,10,000 good? It depends on age, income and goals. What you can judge is direction:
| Month-end | Net worth | Change |
|---|---|---|
| July | ₹6,60,000 | – |
| August | ₹6,95,000 | +₹35,000 |
| September | ₹6,85,000 | −₹10,000 |
| October | ₹7,10,000 | +₹25,000 |
September dipped because markets fell, not because you overspent. The trend still rose over the period. Looking at the line, you can separate three drivers: how much you save (income minus spending), how much your investments gained or lost, and how fast you pay down debt. If net worth is flat while you earn well, the culprit is likely spending or a debt with high interest.
Key takeaways
- Net worth = assets − liabilities; update it on a fixed schedule, ideally monthly.
- Value investments at current market value and loans at the outstanding principal.
- Include credit card balances even before the bill is due.
- A single number matters less than the direction over months and years.
- When net worth dips, check whether it was markets, spending or a new debt.
Frequently asked questions
Should I include my house in net worth?
You can. Use a realistic market estimate and include any home loan as a liability. Some people track it separately so that market-linked and everyday assets are easy to see.
How often should I calculate my net worth?
Monthly is a good balance. It is frequent enough to see trends and infrequent enough to avoid reacting to daily market moves.
Is negative net worth bad?
It is common when you start working or have taken a large loan. What matters is whether the trend is improving.
Should retirement accounts be included?
Usually yes, since they are assets you own, although you may not be able to use them until later. Some people show them as a separate line.
Putting it into practice
SampattiTrack calculates net worth and cash flow from your accounts, so assets, credit cards and loans are in one view. It tracks investment holdings for mutual funds, stocks and gold, supports multiple currencies, and gives you bill reminders for cards and loans. Your data stays on your device with optional private iCloud sync and no sign-up. Take a look on the App Store.
This article is for educational purposes only. It is not investment, tax, legal or financial advice. Examples use made-up numbers, and past returns do not predict future results.