Your net worth is the single most important number in personal finance — it’s simply everything you own (assets) minus everything you owe (liabilities). A 28-year-old with $39,000 in assets and $20,000 in student loans has a net worth of $19,000; a 40-year-old with a $600,000 home, $245,000 in TFSA and RRSP, and a $380,000 mortgage sits at $495,000.
The common benchmark is (Age − 25) × Annual Income ÷ 5, which puts a 35-year-old earning $60,000 at a target of roughly $120,000, and a 45-year-old earning $75,000 at $300,000. But the absolute number matters less than the trend — if your net worth is growing by 10–20% per year through a combination of debt paydown, investment returns, and new savings, you’re on track regardless of where you started. Track it quarterly in a spreadsheet or free tool like Wealthica, and calculate both total net worth (including your home) and liquid net worth (investments only) so you know both your on-paper position and what’s actually accessible.
What is Net Worth?
The Formula
Calculation
Net Worth =
Assets - Liabilities
Simple Example
Assets
Amount
Savings
$10,000
TFSA
$25,000
RRSP
$35,000
Home value
$500,000
Car
$15,000
Total Assets
$585,000
Liabilities
Amount
Mortgage
$350,000
Car loan
$8,000
Credit card
$2,000
Total Liabilities
$360,000
Net Worth
$225,000
What to Include
Assets
Category
Examples
Cash & Bank
Chequing, savings, emergency fund
Registered Accounts
TFSA, RRSP, FHSA, RESP
Non-Registered
Investment accounts
Real Estate
Primary home, rental properties
Vehicles
Cars, motorcycles, boats
Business
Ownership stakes
Personal Property
Jewelry, collectibles (significant value)
Other
Cash value life insurance, inheritance expected
Liabilities
Category
Examples
Mortgage
Primary, HELOC
Car loans
Outstanding balance
Student loans
Federal, provincial, private
Credit cards
Current balance
Personal loans
Lines of credit
Other
Money owed to family
Valuing Your Assets
Easy to Value
Asset
Use
Bank accounts
Current balance
Investments
Current market value
TFSA/RRSP
Statement balance
Home Valuation
Method
Accuracy
Recent comparable sales
Best
Automated valuation (Zolo, etc.)
Good estimate
Property assessment
Often low
Realtor opinion
If selling soon
Vehicle Valuation
Method
Source
Canadian Black Book
canadianblackbook.com
AutoTrader listings
Similar vehicles
Dealership trade-in
Often low
Personal Property
Rule
Major items only
$1,000+ value
Be conservative
What could you sell it for?
Don’t count household items
Usually minor
Types of Net Worth
Total Net Worth
Includes
Everything
All assets
Including home
All debts
Everything you owe
Standard measure
Most comprehensive
Liquid Net Worth
Includes
Only liquid assets
Cash, investments
Can access quickly
Excludes
Home, car, illiquid
Best for
Emergency readiness
Investable Net Worth
Includes
Investments only
TFSA, RRSP, non-registered
Financial assets
Excludes
Home equity, personal property
Best for
Investment planning
Net Worth by Age (Canada)
Benchmarks
Age
Median Net Worth
Target (Higher)
25-34
~$50,000
$100,000+
35-44
~$235,000
$400,000+
45-54
~$520,000
$800,000+
55-64
~$700,000
$1,200,000+
65+
~$540,000
$1,000,000+
Statistics Canada data, includes home equity
Better Formula
Calculation
Target =
(Age - 25) × Gross Income ÷ 5
Example
Age 40
Income $80,000
Target
(40-25) × $80,000 ÷ 5 = $240,000
Calculating Your Net Worth
Step-by-Step
Step
Action
1
List all assets with values
2
List all liabilities with balances
3
Total assets
4
Total liabilities
5
Assets - Liabilities = Net Worth
Worksheet
Assets
Value
Chequing account
$
Savings account
$
Emergency fund
$
TFSA
$
RRSP
$
FHSA
$
RESP
$
Non-registered investments
$
Primary home
$
Other real estate
$
Vehicle 1
$
Vehicle 2
$
Other
$
Total Assets
$
Liabilities
Balance
Mortgage
$
HELOC
$
Car loan
$
Student loans
$
Credit cards
$
Personal loan
$
Line of credit
$
Other
$
Total Liabilities
$
Net Worth
$
Tracking Over Time
Why Track
Benefit
Details
Measure progress
See growth
Stay motivated
Celebrate wins
Catch problems
Identify issues early
Plan better
Set realistic goals
How Often
Frequency
When
Minimum
Annually
Better
Quarterly
Optional
Monthly
Tracking Tools
Method
Best For
Spreadsheet
Full control
Wealthica
Automatic (free)
Mint/Credit Karma
Bank account focused
Manual worksheet
Simple approach
Improving Net Worth
Two Ways to Grow
Method
Action
Increase assets
Save and invest more
Decrease liabilities
Pay off debt faster
Strategies
Strategy
Impact
Automate savings
Consistent growth
Pay extra on mortgage
Build equity
Eliminate credit card debt
Remove liability
Maximize TFSA/RRSP
Tax-advantaged growth
Career growth
Higher income
Priority Order
Priority
Action
1
Pay off high-interest debt
2
Build emergency fund
3
Get employer RRSP match
4
Max TFSA
5
Max RRSP
6
Non-registered investing
Common Questions
Negative Net Worth
Situation
Normal For
Net worth below $0
New graduates with student loans
New homeowners with large mortgage
Action
Focus on debt reduction + savings
Include Pension?
Type
Include?
Defined contribution
Yes (your account balance)
Defined benefit
Optional (complex to value)
If including DB
Use present value calculation
Should I Include RRSP at Full Value?
Approach
Pros/Cons
Full value
Simple, standard
After-tax value (~70-80%)
More accurate purchase power
Either works
Just be consistent
Sample Net Worth Statements
Early Career (Age 28)
Assets
Value
Chequing
$3,000
Emergency fund
$8,000
TFSA
$15,000
RRSP
$5,000
Car
$8,000
Total
$39,000
Liabilities
Balance
Student loans
$18,000
Credit card
$2,000
Total
$20,000
| Net Worth | $19,000 |
Mid-Career (Age 40)
Assets
Value
Chequing
$5,000
Savings
$15,000
TFSA
$95,000
RRSP
$150,000
Home
$600,000
Car
$25,000
Total
$890,000
Liabilities
Balance
Mortgage
$380,000
Car loan
$15,000
Total
$395,000
| Net Worth | $495,000 |
The Bottom Line
Calculate your net worth once and then track it quarterly — the trend matters more than the snapshot. A negative net worth in your 20s (student loans, new mortgage) is completely normal and not a reason to panic. Focus on the priority order: eliminate high-interest debt, build an emergency fund, capture employer RRSP matching, then max your TFSA and RRSP. Every dollar that moves from the liability column to the asset column accelerates your net worth in two ways simultaneously.