Assets minus liabilities.
Net worth is the value of the assets you include, less the debts you include. It gives you a broader position than one bank account, but its usefulness depends on keeping both sides complete and the values current.
In Moolah, bring property, investments, super, cash and debts into the same picture. Review the categories and the history together. A manually entered property estimate and a recently updated bank balance do not have the same certainty or update frequency.
A transparent household example.
The product preview uses fictional Australian household data. It includes $1,100,860 in assets and $505,000 in liabilities, resulting in $595,860 in net worth. All amounts are AUD.
| Assets included | $1,100,860 |
|---|---|
| Liabilities included | −$505,000 |
| Net worth | $595,860 |
The total is a position at a point in time. It does not mean $595,860 is available to spend. Property, super and other assets may have access restrictions, selling costs or values that change. The example does not estimate those costs.
Make the inputs easy to check.
- Include both sides. If you add a property, check that its related debt is included too. Review which household ownership amounts you are recording.
- Separate entered and connected information. A manual value needs your review. A bank connection does not automatically value every asset you own.
- Avoid counting the same holding twice. Check whether a balance is already represented by an account or another asset entry.
- Use a consistent review point. Comparing values captured on different dates can make a change look larger or smaller than it is.
Read the change in context.
A rise in net worth can come from saving, a lower debt balance or an updated asset estimate. Those changes have different implications for everyday cashflow. Review the underlying account or asset before drawing a conclusion from the total.
Use Cashflow for money coming in and going out. Use Income Mapping to plan monthly spending and goal contributions. The Moolah Model explains how assumptions are used when exploring a possible future; a projection is separate from your current net worth.
Start with the information you know.
You do not need an exact valuation for every item to begin organising the picture. Make the basis of each entry clear, revisit estimates and use the same approach when comparing periods. Moolah is a planning tool; its totals are not independent asset valuations.
For an independent explanation and a simple starting calculation, see ASIC Moneysmart’s net-worth calculator. Product estimates are subject to the modelling and estimates disclosure.