Breakdown
How it works
Net worth = everything you own minus everything you owe. Liquid net worth excludes your home and vehicles because you cannot spend them without selling. A debt-to-asset ratio under 50% is comfortable; under 30% is strong.
Formula
Worked example
Assets 392,000 (home 300k, investments 60k, cash 15k, car 12k, other 5k) − liabilities 189,500 = net worth 202,500; liquid 65,500; debt ratio 48%.
Frequently asked questions
Should I include my pension?
Yes, at its current transfer value — it is yours, just locked. Many people track "accessible" and "total" net worth separately.
What value for my home and car?
Realistic sale price today (Zoopla/Rightmove estimate, trade-in value for the car), not what you paid.
What is a good net worth for my age?
A common benchmark is age × gross income ÷ 10 (so 40 × 60,000 ÷ 10 = 240,000). Treat it as a prompt, not a verdict — location and career path vary hugely.