Year-over-year net worth change in local currency and percentage

Why Net Worth Matters More Than Income

Income is a flow; net worth is a stock. Income pays bills; net worth represents actual financial health. A 200,000 earner spending 200,000 is building zero net worth. A 70,000 earner saving 20,000 annually is building real wealth. Tracking net worth over time reveals the trajectory income alone hides.

Healthy Growth Patterns

Healthy annual net worth growth combines savings rate plus investment returns. A 20 percent savings rate on 80,000 income at 7 percent investment returns produces roughly 15-20 percent annual net worth growth in early career. Later career slows as the base grows — 5-10 percent annual growth is common for established households with 500,000+ net worth.

Quick example

With current net worth of 150,000 and previous net worth of 120,000, the result is 25.00%. Change any figure and watch the output shift — it's often more useful to see the pattern than to memorise the formula.

Which inputs matter most

You enter Current Net Worth and Previous Net Worth. The rate and the time horizon usually dominate — compounding means a small change in either reshapes the final figure more than a similar shift in contribution size. Test this by doubling one input at a time.

What's happening under the hood

Computes dollar change and percentage change from previous to current net worth. Categorizes percentage growth: 10%+ strong, 0-10% modest, negative decline. The formula is listed in full below. If the number looks off, you can retrace the calculation by hand — that's the point of showing the working.

Using this as a check-in

Re-run this every three months. A single reading tells you where you stand; four readings tell you whether things are improving. The trend matters more than any individual snapshot.

What this doesn't capture

The score is a composite of the inputs you provide. Life context — job security, family obligations, health, housing — doesn't appear in the math but shapes the real picture. Use the number as a prompt, not a verdict.