Net worth—one number that sums up your money
To me, net worth = assets minus debts. It’s the big picture: are you building wealth or treading water? I wired this snapshot to the same numbers you enter for your Margin Score—cash, sinking funds, investments, and debt—so you see one clear number.
"What gets measured gets managed."
Your net worth snapshot
Uses Enter your current finances: emergency fund + sinking funds + long-term investments, minus personal debt and mortgage.
Track this number over time. Growing net worth means you’re building margin and reducing debt. Your Margin Score breaks down how you get there—savings rate, safety net, investing, and debt.
Why one number
Income and expenses move every month. Net worth captures the result: are you adding to assets or paying down debt? It’s the clearest single measure of whether your money skills are working. Spend less than you earn. Put the difference toward savings and debt payoff.
Why I don’t count my primary residence
A lot of people count their primary residence in net worth: home value minus mortgage. For me, the place I live is shelter—something my family and I need no matter what. It’s not an asset I’m holding to grow or sell for a profit; it’s consumption, the same way rent is. So I don’t treat it as part of my investable wealth. This snapshot uses the same numbers as your Margin Score—cash, sinking funds, and long-term investments, minus debt—and doesn’t include your primary residence. You might reasonably include your home if you plan to downsize or free up equity; there’s no single “right” definition.
Related research
The ideas in this guide are backed by academic and policy research. We organize fundamental studies by Margin Score pillar on our Research page.
View research for this pillar →