As we welcome 2025, it’s the perfect time to reflect on the past year and set goals for the months ahead. While resolutions often center around health, relationships, or career, focusing on financial wellness is equally essential. Calculating your personal net worth—the difference between what you own (assets) and what you owe (liabilities)—offers a clear snapshot of your financial health and serves as a powerful tool for making informed decisions.

Your net worth acts as your financial report card, reflecting how well you’re managing your money. Regularly tracking it allows you to monitor progress, such as reducing debt or growing wealth. A rising net worth indicates wealth-building progress, while a stagnant or declining figure signals the need for adjustments. Breaking it down can highlight strengths, like increasing assets, or weaknesses, such as excessive debt, helping your efforts align with pursuing long-term goals like purchasing a home, paying of debt, and retirement. 

Calculating your net worth is straightforward, Net Worth = Total Assets – Total Liabilities: list your assets, including savings, investments, real estate, and other valuables. Subtract your liabilities, such as loans, credit card balances, and mortgages. The resulting figure is your net worth, which you can easily track with tools, apps or paper and pencil. Annual reviews are great for long-term planning, while quarterly evaluations provide a more detailed view, especially after major life events like buying property or changing jobs. 

This January, take charge of your finances by assessing your net worth. Whether it’s negative, modest, or substantial, the key is to consistently track and adjust. Treat your net worth as a guide to making intentional choices that can help financial well-being. 

Jack Syryczuk is a registered financial advisor with LPL Financial. The information in the article is for general education and informational purposes. Jack can be reached by contacting Adam Smit Investment Management at 715-644-3434 or online at www.adamsmitim.com. Securities and advisory services offered through LPL Financial, a registered investment advisor. Member FINRA/SIPC.