Your net worth is the most important number in personal finance. It’s your scorecard. You calculate your net worth by subtracting your liabilities (money you owe – like student loan and credit card debt) from your assets (things that you could sell for money).
It doesn’t matter how much money you make if you spend it all. What’s important is working to increase your net worth over time. Here’s the free app I use to track my own net-worth: Personal Capital