Everyday money · General financial education

Simple net worth

Simple net worth is what you own minus what you owe. Account balances, a car at a rough value, reserves on one side; loans, overdraft, open card balances on the other.

In more detail

The figure is a snapshot, not a verdict on your character. Illiquid items (a home, pension pots) and moving market values make the number rough. Paying down debt or building liquid reserves change the balance sheet in different ways.

Background

Finmon scores nobody and sets no target figure. Net worth says little about cashflow timing: you can net positive and still be tight on rent week. Pair the idea with liquidity, reserve and Income and essential spending.

An example

Current account €800, easy-access savings €2,000, car roughly €3,000. Instalment loan €4,500, card €200. Rough net worth: €5,800 owned minus €4,700 owed = €1,100.

A common misconception

Net worth measures how good I am with money.

It is own minus owe at a point in time. Cashflow and liquidity are separate topics.

Source: FDIC · Money Smart for Adults. Last reviewed: 2026-11-09. Editorially reviewed on 2026-11-09. Next review 2027-11-09. Version 0.2.0. Finmon explains. It does not advise. Not investment, tax or legal advice.