What net worth actually is
Net worth is the simplest number in personal finance: everything you own minus everything you owe.
Own a car worth $10,000 but owe $4,000 on the loan? That car contributes $6,000 to your net worth. Have $20,000 in checking and $25,000 in credit card debt? You're net negative $5,000 in cash terms.
How ReadyCents calculates it
Every account you create has a type (checking, savings, credit, loan, asset, liability, etc.). ReadyCents adds assets such as cash, savings, investments, and property, then subtracts debts such as credit cards, loans, and mortgages. The difference is your net worth.
Off-budget accounts still count toward net worth. Your retirement account doesn't affect your monthly budget, but it absolutely affects your wealth.
The trend chart
Net Worth tracks a monthly snapshot over time, so you can see whether the line is going up, sideways, or down. Down for a single month after a big car repair is fine; down for six months in a row is a signal.
Most people have never seen this number for themselves outside of an annual financial-planner meeting. Watching it move with your decisions is one of the most motivating numbers in budgeting.