Net worth is one simple number: add up everything you own (cash, savings, investments, things of value), then subtract everything you owe (loans, credit-card balances, EMIs). The result is your net worth.
Income tells you what came in this month. Net worth tells you what you've actually built. It's the only number that captures real progress over time — and it works at any income level.
- 01
List your assets: bank balance, investments, valuable stuff.
- 02
List your liabilities: loans, card balances, money you owe friends.
- 03
Subtract. That's your number — even if it's negative today.
- 04
Re-check it every 3 months. Watch the trend, not the number.
A student with ₹20,000 in savings and ₹2,00,000 in education loans has a net worth of −₹1,80,000. That's normal — and totally fixable as the loan shrinks and savings grow.