Reading Your Net Worth: A Diagnostic, Not a Scorecard
อัปเดต: · 4 min · Beginner
Assets minus liabilities is the simplest balance sheet in personal finance. Here is how to calculate it honestly — and what the number does and does not say.
Building an honest balance sheet
List cash, investments, retirement accounts, and property at values you could realistically realize today, then subtract every debt. Avoid generous estimates on depreciating assets — they flatter the picture and erode trust in your own numbers.
What the number does not capture
A high net worth concentrated in an illiquid asset can coexist with vulnerability to a small emergency. Human capital — your future earning ability — never appears, though it is often your largest asset early in life.
Trend beats level
Negative net worth in your twenties with student debt is normal and informative, not shameful. Watching the gap narrow over time tells you whether budgeting and debt decisions are working.
A private practice
You do not need to share the figure, nor link any bank to learn from it. AILICAI’s tools run on the numbers you type, and we never ask for account passwords or full card numbers.
Calculator FAQ
What is the difference between education and advice?
Education explains how a concept or formula works in general. Advice recommends what you personally should buy or do. AILICAI provides only the first, and suggests a licensed professional for the second.
Why are returns labeled hypothetical?
Because no one can know future returns, and showing a single smooth growth line can mislead. All projections here are simulations you control — not promises.