Net worth is the difference between assets and liabilities on a chosen date. It is not the same as regular income or the cash in a bank account. Tracking it can show how your financial position and debts change, but it does not by itself measure short-term liquidity or your ability to pay this month’s bills.
Use a simple formula
Net worth = assets − liabilities. List deposits and investments, assets you could sell, and personal property. Use cautious estimates for values. Record debts from recent statements, including mortgages, car loans, credit cards, and other borrowing.
Make the record easy to compare
- Use the same measurement date each time, such as quarter-end or every six months.
- Record each item, its value, the source of the figure, and the date it applies to.
- Use the current outstanding balance for debt, not the approved credit limit.
- Calculate net worth and compare it with the previous period.
- Note why it changed, such as additional savings, debt repayment, or a change in market prices.
Do not use one number to answer every question
A high net worth does not necessarily mean you have enough cash for short-term expenses. A home or some investments can take time to sell and may fluctuate in value. Keep a separate cash-flow budget, and store asset records securely without exposing account numbers or personal information.
The Bank of Thailand recommends beginning financial planning by assessing your current position, setting goals, making a plan, and reviewing it as circumstances change.