If you’ve ever heard the term "net worth" and wondered what it really means, you’re not alone. In plain terms, net worth is the total value of everything you own minus any debt you owe. Think of it as a financial scorecard that tells you where you stand.
1. List every asset you own – cash, bank accounts, stocks, property, cars, even valuable collectibles.
2. Write down the current market value of each item. Use recent appraisals or online price guides for accuracy.
3. Add up all those values to get your total assets.
4. List every liability – credit‑card balances, mortgages, loans, unpaid taxes.
5. Subtract the liabilities from the assets. The result is your net worth.
This method works whether you’re a student with a small savings account or a billionaire with multiple estates. The key is to update the numbers regularly so you can see how decisions affect your wealth over time.
Seeing net worth in action helps put the concept into perspective. Take Sean "Diddy" Combs – even after legal battles, his media empire and music catalog keep his net worth well above $1 billion according to public estimates. Then there’s Fred Arocho, a Kenyan radio commentator who jumped stations for a salary over KSh 500,000; that kind of contract boost can dramatically shift an individual's net worth in a single year.
In African business news, Peter Obi recently sought a N225 billion lifeline for Fidelity Bank. If the deal goes through, it could add massive assets to his portfolio and push his personal net worth into the high‑hundreds of millions. Sports stars also illustrate wealth swings: Patrik Schick’s contract extension with Bayer Leverkusen locks in multi‑million euros, while Paul Pogba’s doping suspension threatened a drop in his earnings.
These stories show that net worth isn’t static – it reacts to contracts, legal outcomes, investments and market changes. Tracking your own number gives you a clear view of whether you’re building wealth or slipping backward.
Want a quick start? Use an online net worth calculator or a simple spreadsheet. Enter assets on one side, liabilities on the other, and watch the total update as you add new income streams or pay down debt. The process takes just a few minutes but can spark better money habits.
Finally, remember that net worth is a tool, not a judgment. It helps you plan for big goals – buying a home, funding education, or retiring comfortably. Keep it realistic, review it often, and adjust your spending and saving to move the needle in the right direction.
