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Join the discussionNo way in all heck is your value based on your valuables. At Future Women, we firmly believe money is only ever a tool for doing other cool and powerful stuff. Using how much money we have to measure ourselves is hardly a sophisticated mindset. But when it comes to setting your affairs in order, we know that having a target in mind is a terrific motivator. Something like, I want X in superannuation, X in the bank, X in my business and X in my liquor cabinet.
But in order to get where you’re going, it’s helpful to know where you are now. Your net worth is the difference between the total value of everything you own (assets), and the total value of all your debts (liabilities). It’s kind of a sum total figure of where your money situation is at. When that number changes, you can measure your financial progress over time.
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Jessica Sier is a financial journalist who currently heads up the content strategy at Spaceship, an investing startup. Prior to that she was a reporter at the AFR where she discovered that breaking down financial jargon was a public good.
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This report contains general advice. It does not take account of your individual objectives, financial situation or needs. You should consider talking to a financial planner before making a financial decision.
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