The Net Worth Blueprint: Calculate, Track & Grow Your Wealth
Knowing your net worth is one of the most powerful ways to measure and build lasting wealth. While metrics like your credit score, mortgage balance or superannuation nest egg can all tell part of the story, net worth alone provides a clear snapshot of your overall financial health.
Beyond Interest Rates: Property and Other Assets
Investing in property remains central to many Australians’ wealth strategies. In March, national home prices rose 0.27%—reaching record highs and pushing annual growth to 3.91% and five‑year growth to 48%.¹ Supply shortages and ongoing population growth are expected to keep prices on an upward path, although affordability pressures and modest rate cuts may slow the pace of gains.
But your home is just one piece of the puzzle. A complete asset tally should include:
Real estate equity (market value minus any mortgages)
Investment portfolios (shares, managed funds)
Retirement savings (superannuation)
Cash and term deposits
Personal valuables (jewellery, collectibles)
What Net Worth Really Means
Your net worth = Total assets − Total liabilities.
Think of it as a financial scorecard: it answers the question, “If I sold everything today and cleared all my debts, what would I have left?”
A positive net worth means your assets exceed your debts.
A negative net worth means you owe more than you own.
Tracking this figure over time shows whether you’re moving toward your goals—and highlights where you might need to adjust your budget or investment plan. As REA Group senior economist Eleanor Creagh explains, net worth isn’t just a number; it’s a reflection of every financial decision you’ve made—and the roadmap to where you want to go next.²
Calculating Your Net Worth
List all assets and estimate their current values.
List all liabilities (mortgages, loans, credit cards) and total them.
Subtract total liabilities from total assets.
Maintaining an up‑to‑date net worth statement helps you:
Identify areas where you can pay down debt faster.
See how different investments impact your overall wealth.
Stay motivated by celebrating milestones along the way.
Is There a “Normal” Net Worth?
Net worth varies widely with age, income level and life stage—so there’s no single benchmark for everyone. However, the Australian Bureau of Statistics estimated the average household net worth at about $733,000 at September 2023, based on $18.3 trillion in assets and $3 trillion in liabilities across roughly 20.9 million adults.³
Remember: it’s not about comparing yourself to the neighbour next door but about keeping your own wealth trajectory on track. By regularly reviewing your net worth—and using tools like a savings calculator to set targets—you can make smarter decisions, celebrate progress, and build genuine financial security.
Example: Calculating Jane’s Net Worth
Conclusion:
Jane’s net worth of $465,000 means that if she sold all her assets today and paid down her debts, she’d have $465K left—a clear snapshot of her financial health and progress toward lifelong goals.