How it works
Net worth is everything you own minus everything you owe, on the same day. Use current balances for accounts and debts, and a realistic sale value for your home and car rather than the price you paid. The debt-to-asset ratio is total debts divided by total assets. The last line leaves out your home and its mortgage, which shows how much of your net worth is money you could actually reach. Tracking the same number every month is what makes it useful.