Net worth: your financial balance sheet
Your net worth is the single most important figure for your financial health. It is calculated with a simple formula: total assets minus debts.
A positive net worth means you own more than you owe. The higher this number, the greater your financial security and independence.
What counts as an asset?
- Liquid assets
- Cash, checking accounts, savings accounts, fixed deposits, stocks, ETFs, funds and cryptocurrencies – anything quickly available.
- Real estate
- The current market value of your property (not the purchase price). Use valuation portals for an estimate.
- Vehicles & tangible assets
- Cars, motorcycles, motorhomes – each at current market value. Valuable collections can also be relevant.
- Retirement provisions
- Company pension schemes, private pension insurance, Riester and Rürup contracts (surrender value).