Know Your Net Worth

Why Every Mom Should Track This Powerful Number

Let’s get one thing straight: your worth as a human? Absolutely priceless. Your kid’s favorite snack-finder, emotional support human, and general household MVP? Unmatched.

But your net worth? That’s a different story—and it’s one that’s worth knowing. While it might sound like something only millionaires or Wall Street bros talk about, your net worth is one of the most important numbers in your financial life.

What is net worth?

Your net worth is simply the difference between what you own and what you owe.

Net Worth = Total Assets – Total Liabilities

Assets = the stuff you own

• Cash in checking or savings accounts

• Retirement accounts (401(k), Roth IRA, etc.)

• Investments in brokerage accounts

• The equity in your home

• Paid-off car value

• Other valuable assets (designer watches, handbags, high-end art you could resell if needed)

Liabilities = the stuff you owe

• Mortgage balance

• Student loans

• Car loans

• Credit card debt

• Any other loans (personal loans, buy-now-pay-later decisions you may regret)

So, net worth is a simple subtraction problem. I know, math, ugh—but you can use a calculator.

How to Calculate Your Net Worth

Step 1: Grab a cup of coffee. Or wine. Or iced matcha. Whatever gives you that “can-do” attitude.

Step 2: Make two lists:

• One with everything you own (assets)

• One with everything you owe (liabilities)

Step 3: Subtract the second list from the first. Boom—that number is your net worth.

For example, let’s say you have:

• $5,000 in checking

• $30,000 in savings

• $50,000 in your 401(k)

• $21,000 in your Roth IRA

• $10,000 in your Health Savings Account (HSA)

• $150,000 of home equity

• $8,000 car value (fully paid off)
  
  Total Assets = $274,000

And you owe:

• $3,000 in credit card debt

• $35,000 in student loans

• $17,000 left on your car loan

• $200,000 left on your mortgage
  
  Total Liabilities = $255,000

$274,000 - $255,000 = $19,000 (Net Worth)

Voilà! You’re officially tracking your net worth.

Why Net Worth Matters

Knowing your net worth gives you the full picture of your financial health—not just what’s in your checking account. It helps you see progress as you pay off debt or grow your savings, spot trends (like lifestyle creep), set more meaningful financial goals, and measure growth over time. 

Think of it like going to therapy—not because you’re chasing perfection, but because awareness helps you make empowered decisions. Same goes for your money.

What If Your Net Worth Is Negative?

We’ve all been there. Student loans, car loans, that emergency vet bill from 2020 - life happens. A negative net worth doesn’t mean you’re failing, it just means you’ve got a starting line.

The good news? Every payment you make toward debt, every dollar you save, and every smart money move you make nudges that number higher. Tracking it gives you a way to say, "Look how far I’ve come."

Mom Brain Recap

• Your net worth is everything you own minus everything you owe.

• Knowing it gives you clarity, confidence, and control over your financial journey.

• Don’t worry if the number isn’t where you want it to be—it’s not a grade. It’s just your starting point.

Whether you’re balancing spreadsheets or toddlers, this is one number that belongs in your mental mom-purse. Check it once or twice a year, use it to set goals, and watch how even small money moves add up to big changes over time.

Want a structured way to see what you own versus what you owe? Grab the free, easy-to-use SheWealth Net Worth Calculator in the Resource Garden.