Here's the Net Worth That Puts You in the Top 5% of American Households
Tracking your net worth can be a great way to stay on top of your finances and ensure you're making good progress toward building wealth.
Your net worth is a snapshot of your current financial picture. Think of it like a personal balance sheet. To calculate your net worth, you add up all of your financial assets -- cash savings, retirement accounts, other investments, your home value, and any other property -- and subtract any liabilities -- your mortgage balance, student loans, credit card balances, and any other debt you might owe.
If you consistently save more than you spend, you should see your net worth climb over time. After investing consistently for years, you may be surprised at how much your net worth can change in a given year. You could find your net worth increasing by tens of thousands or even hundreds of thousands of dollars in just a few months, depending on how the stock market performs.
Source Fool.com
