GUIDE深度 · Deep dive
How to Read Net Worth
Net worth is a rough progress measure, not cash flow. It can be high but tied up in a home, or negative with stable income; read it with liquidity, debt cost and life stage.
Definitions
Use current values for assets, not purchase prices.
Use outstanding balances for liabilities, including interest and fees.
Watch the trend
Compare quarter to quarter with the same definitions; ignore market noise.
Rising net worth with falling liquidity may not be good.
FAQ
Is negative net worth normal?
Common with a mortgage or student loans when young; focus on trend and repayment capacity.
Should I include retirement accounts?
Yes, but note pre-tax or lock-up status; do not treat it as immediately spendable.