What Counts as Assets?

Assets include: cash in bank accounts, investments (stocks, bonds, mutual funds), real estate (home, rental properties), vehicles, and valuable items (jewelry, collectibles). Use current market value, not purchase price. For investments, use the current market price as of your net worth calculation date. For real estate, use recent appraisal or market comparables. Real estate and investments typically make up 70%+ of total assets for middle/high-income earners.

What Counts as Liabilities?

Liabilities include: mortgage (remaining balance, not original loan), car loans, personal loans, credit card debt, student loans, and any other obligations. Use current balance owed, not original loan amount. For your home mortgage, use the remaining balance (you own the difference between market value and mortgage). Paying down debt increases net worth dollar-for-dollar.

Average Canadian Net Worth by Age

Statistics Canada reports: age 25–34: ~$100,000 (often negative including student debt); age 35–44: ~$400,000; age 45–54: ~$700,000; age 55–64: ~$900,000; age 65+: ~$600,000 (some retired, drawing down assets). These are medians, so half earn more, half less. Homeownership is the biggest net worth driver for most Canadians. Building net worth is 70% saving/investing and 30% investment returns.

Tracking Net Worth Growth

Calculate net worth annually on the same date (e.g., December 31) to track year-over-year growth. Growth comes from: (1) contributions (saving money), (2) investment returns, and (3) debt paydown. A 6% investment return on $500,000 nets $30,000 growth, but saving $30,000 also increases net worth $30,000. Most people grow net worth through savings first, then investment returns compound later.