The Formula

Net Worth = Total Assets − Total Liabilities

Net worth is your financial snapshot — what you would have left if you sold everything you own and paid off everything you owe. A negative net worth (more debt than assets) is common for young Australians, particularly those with a mortgage or HECS debt. Tracking net worth over time is more meaningful than the number at any single point.

Step 1: List Your Assets

  • Cash and savings: All bank accounts, term deposits
  • Superannuation: Your current super balance (log into myGov or your fund’s app)
  • Investment accounts: Shares, ETFs, managed funds — use current market value
  • Property: Estimated current market value of your home or investment properties (not the purchase price)
  • Vehicle(s): Current resale value (check similar models on Carsales)
  • Other valuables: Jewellery, art, collectibles with significant resale value

Step 2: List Your Liabilities

  • Mortgage balance: Remaining amount owing on your home loan
  • Investment property loans
  • Car loan: Remaining balance
  • Credit card balances: Current balance on all cards
  • Personal loans
  • HECS/HELP debt: Current balance (check via myGov → ATO → Loans)
  • Buy Now Pay Later: Afterpay, Zip, Klarna balances

Step 3: Calculate

Subtract total liabilities from total assets. Track this number in a simple spreadsheet every 3–6 months. The direction of change over time is what matters — a gradually increasing net worth indicates you are building wealth regardless of the current absolute number.

Including or excluding super?Australian financial planners typically calculate net worth both including and excluding super, since super is generally inaccessible until preservation age (60 for most people). Your “accessible net worth” (excluding super) and “total net worth” (including super) tell different stories about your financial position.

Frequently Asked Questions

There is no single benchmark, but as a general guide: by 30, many financial planners suggest aiming for a net worth equivalent to your annual income. By 40, two times annual income. By 50, four to five times. These are rough guides — property ownership, career stage, family structure and individual circumstances vary enormously. More useful than comparing to others is comparing to your own past net worth — consistent upward movement indicates healthy financial progress.
Technically yes — your car has a realisable value and should be included as an asset. However, cars depreciate rapidly and are often a net negative (particularly if financed). Including the car and the car loan together is accurate; many people exclude vehicles from net worth tracking as they are consumption items rather than wealth-building assets. Either approach is valid as long as you are consistent.