Net Worth: Your true measure of wealth
Society usually measures a person's wealth by the car they drive or their monthly salary. However, in the world of professional finance, the only metric that matters is your Net Worth.
The ultimate formula
Net Worth is calculated using a very simple equation:
Assets - Liabilities = Net Worth
- Assets: Everything that holds value (your cash, the value of your house, your cryptocurrencies, stocks, or precious metals).
- Liabilities: Everything you owe (the remaining money you have to pay on the mortgage, the car loan, credit card debts).
If you earn €5,000 a month but owe €6,000, your wealth is decreasing. Your financial goal should always be to see your Net Worth chart grow.
Calculate your wealth in the App:
In Totem Finance you can add all your global wealth. The app automatically adds the value of your accounts, investments, and real estate, subtracting your loans to give you the real evolution chart of your Net Worth.