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BeginnerBudgeting3 min read
Calculating Your Net Worth: The Financial Snapshot Every Young Adult Should Take
Net worth is the single best number to track your financial progress over time. Most young Canadians have never calculated it.
- 1Net worth = total assets minus total liabilities. It's the truest measure of where you stand financially.
- 2Assets include: cash, TFSA, RRSP, FHSA, investment accounts, the value of a car you own, and any real estate.
- 3Liabilities include: student loans, credit card balances, car loans, mortgage balance, personal loans.
- 4Most students and new grads have a negative net worth — that's completely normal and not a reason to panic.
- 5What matters is the trend: is your net worth going up each month? Even by $50? That's the goal.
- 6Track it every 3–6 months in a spreadsheet. Seeing the number climb is one of the best motivators to keep going.
- 7The biggest net worth killers for young Canadians: high-interest credit card debt, depreciating car loans, and not investing early.
- 8The biggest net worth builders: TFSA investing, paying down high-interest debt fast, and growing your income.
- 9Wealthsimple and many budgeting apps let you link accounts to automatically calculate your net worth in real time.