Add your assets, subtract your debts, and see your net worth.
Net worth
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Total assets
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Total liabilities
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Worked example
Take a household with N2,000,000 in cash and savings, N3,000,000 in investments, an RSA pension balance of N5,000,000, a property worth N40,000,000 and vehicles and other assets of N8,000,000. The assets add up to N58,000,000. Against that sit the debts: a N1,500,000 personal loan, a N20,000,000 mortgage and N500,000 of card and other debt, which total N22,000,000. Net worth is simply the assets less the debts, so N58,000,000 minus N22,000,000 leaves N36,000,000. Notice that the property and the mortgage are tracked separately. The full N40,000,000 home value sits in assets and the N20,000,000 still owed sits in liabilities, so the home contributes N20,000,000 of equity to the net figure.
Item
Amount (NGN)
Total assets
58,000,000
Total liabilities
22,000,000
Net worth
36,000,000
How it is calculated
Net worth is one of the simplest measures in personal finance: the total of everything you own minus the total of everything you owe. This tool groups your assets into cash and savings, investments, your retirement savings account, property and vehicles, and sums them. It then groups your debts into loans, mortgage and card and other debt, and sums those. Subtracting the second total from the first gives net worth. A positive figure means your assets exceed your debts. A negative figure, common early in a mortgage or after a large loan, means the reverse. The single number matters less than its direction over time, so track it every few months and watch the trend rather than the snapshot.
Frequently asked questions
How do I calculate my net worth?
Net worth is everything you own minus everything you owe. Add your assets, such as cash, investments, retirement savings account balance, property and vehicles, then subtract your liabilities, such as loans, mortgage and card debt. A positive figure means your assets exceed your debts. Tracking it over time is a simple way to see whether your finances are improving.
Should I include my RSA pension balance in my net worth in Nigeria?
Yes, your Retirement Savings Account balance under the Contributory Pension Scheme is a real asset you own, so it belongs on the assets side of your net worth calculation. However, access is restricted until retirement or an approved early withdrawal event, so it is worth noting separately from liquid assets. Some people track a liquid net worth figure that excludes locked-up pension funds to give a clearer picture of funds available today.
How should I value property and vehicles in a net worth calculation?
Use a realistic market estimate rather than the original purchase price. For property in Nigeria, the current resale value in your local market is the right figure. For vehicles, current second-hand market prices apply because cars depreciate quickly. The corresponding mortgage or auto loan sits on the liabilities side, so only the equity portion contributes to net worth.
Is a negative net worth a serious problem?
A negative net worth, where liabilities exceed assets, is common early in a mortgage or shortly after taking a large education or business loan. It becomes a problem only if the gap is widening over time or if debt servicing is consuming income that cannot sustain it. Track net worth every few months. A figure moving steadily toward zero and then positive shows the plan is working, even if the current number is discouraging.