Track your Net Worth
Net worth 101
Assets minus liabilities, and why it matters
Your income tells you what's coming in. Your net worth tells you where you actually stand.
What it is
Net worth is a single number: everything you own, minus everything you owe.
- Assets — your KiwiSaver balance, savings accounts, investments, the value of property you own, a vehicle if it holds meaningful value.
- Liabilities — your mortgage, car loan, credit card balances, personal loans, student loan (if you have one with a balance).
Assets minus liabilities equals net worth. If that number is positive, you own more than you owe. If it's negative — common early in life, especially with a mortgage — you're still building.
Why it matters
Income is a flow. Net worth is a stock. You can earn well and still go backwards if spending and debt outpace accumulation. Net worth is the scorecard that shows whether you're actually building wealth over time.
Tracking it regularly — even once a year — gives you a signal that's more honest than any single month's budget.
How to think about it at different life stages
A negative net worth in your twenties with a mortgage and student loan isn't a crisis — it's normal. What matters is the direction. Is it improving each year?
By your forties, positive net worth and a clear trajectory towards retirement savings matters more. By your fifties, the question becomes whether the assets you have can support the life you want after work.
There are no universal benchmarks that work for everyone, but a rough guide: your net worth should be growing meaningfully each year you're working, and accelerating as your income grows and debt reduces.
How to use it with SortMe
Head to the dashboard in the Net Worth feature to get a instant snapshot of your financial position or that of your household.
When to get advice
If your net worth has been flat or declining for a few years despite reasonable income, that's worth unpacking with a financial adviser. Naked Finance works with SortMe users to identify where the leaks are and build a plan to change the trajectory.
These articles are financial education, not personalised financial advice. For advice specific to your situation, talk to a licensed financial adviser.