When you hear the phrase net worth, you might picture billionaires, private jets, and Forbes lists. But here’s the truth: everyone has a net worth — yes, even you. And it’s one of the most underrated tools for understanding where you stand financially and how to level up.

Dr. Preston D. Cherry, financial planner and author of Wealth in the Key of Life, calls net worth “a snapshot of your financial story.” Translation? It’s not about comparing yourself to Jeff Bezos; it’s about knowing whether you’re moving forward or backward in your own money journey.

 
The Easy Math Behind Net Worth
Forget complicated spreadsheets. Cherry breaks it down like this:

What you own – what you owe = your net worth.

• Assets = cash, investments, retirement accounts, your car, your house, even business equity.
• Liabilities = credit card debt, student loans, car payments, your mortgage, or anything else you owe.

That’s it. One number, but a powerful one.

 
Why It’s More Than Just a Number
Cherry says your net worth isn’t static; it’s your personal progress tracker. Think of it as your financial GPS: it shows where you are right now and where you’re headed. Checking it quarterly or yearly can highlight blind spots (like debt that’s dragging you down) and opportunities (like savings you haven’t maximized).

“It tells you where you stand, how far you’ve come, and your aspirational future,” Cherry explained.

 
How to Actually Grow It
The good news? You don’t need millions to increase your net worth — you just need a strategy:

• Automate savings & investing: Let compound growth do its thing.
• Destroy high-interest debt: Paying it off is basically a guaranteed ROI.
• Spend intentionally: Avoid lifestyle creep and burnout-level frugality.
• Invest in yourself: Skills, health, and education often pay the biggest dividends.
   

The Long Game
Building net worth isn’t flashy. It’s not about “get rich quick” schemes; it’s about aligning habits with your values and sticking to them. Or, as Cherry puts it: “Sometimes it’s boring… but consistency builds confidence — not just in your finances, but in your future.”