Net Worth
What you own minus what you owe.
The single most useful number in personal finance. Track it once a quarter; it tells you whether your money habits are actually working.
What counts as an asset (and what doesn’t)
Include: cash savings, TFSA/RRSP/FHSA balances, your home’s current market value, vehicles (resale value, not purchase price), investment property equity, business equity if applicable.
Don’t include: your gross salary (that’s income, not net worth), depreciating assets like household furniture, expected future inheritances, unrealized stock options before vesting.
Liabilities include: mortgage balance, credit card debt, car loans, student loans, lines of credit, any money you owe.
Track this once per quarter. A growing net worth (even by small amounts) means your habits are working. A flat or shrinking one is the signal to revisit your budget.