Calculating your net worth is a crucial step in understanding your financial health. In Canada, it involves determining the difference between your assets and liabilities. For instance, if you own a home worth $500,000, have $20,000 in investments, and owe $150,000 on your mortgage, your net worth would be $370,000.
Calculating your net worth provides a comprehensive snapshot of your financial situation, enabling you to make informed decisions about your financial future. Historically, it has been a standard practice for individuals and organizations, allowing them to track their financial growth and progress.