How Rich Are You? Here’s the Simple Way to Know Your Net Worth

You probably know how much is in your bank account right now. But do you actually know your net worth?

For most Nigerians juggling rent, side hustles, and “urgent 2k” requests, calculating net worth sounds like something only Dangote, Davido, or Tony Elumelu needs to do.

But knowing your net worth could be the difference between financial confusion and financial control.

Your net worth is a mirror that shows where you truly stand financially. And once you understand it, managing money becomes a lot less stressful. You also unlock a level of financial literacy.

What Exactly is a Net Worth?

Your net worth = what you own – what you owe. In plain English: if you sold everything you own today and paid off all your debts, what’s left is your net worth.

For example: If you have ₦4 million in savings, a car worth ₦3 million, and investments worth ₦2 million, that’s ₦9 million in assets. But if you owe ₦2 million in loans and ₦1 million in rent arrears, your liabilities are ₦3 million. Your net worth = ₦9m – ₦3m = ₦6 million.

And here’s where it gets interesting. Earning a big salary doesn’t mean you have a high net worth.

Take Chioma and Tunde:

Chioma earns ₦800k a month but owes ₦3m in debt.
Tunde earns ₦400k, owns a small car and some land in Ibadan, and has zero debt.

Guess who’s financially healthier? Tunde. Because net worth isn’t about how much you make but about how much you keep and grow.

How To Calculate Your Net Worth (Without Stress)

Knowing your net worth doesn’t require an MBA or a financial course. You just need honesty, a list, and maybe your calculator.

Step 1: List your assets

These are things you own that have value:

Cash (in your bank, PiggyVest, Kuda, OPay, PalmPay, etc.)
Investments (mutual funds, real estate, stocks, crypto, or a side business)
Valuables (your car, land, gold jewellery, even your MacBook if it has resale value)

Step 2: List your liabilities

These are things you owe:

Loans (salary advances, student loans, loan apps, cooperative or microfinance loans)
Rent or bills owed
BNPL (“Buy Now Pay Later”) debts

Step 3: Subtract liabilities from assets

That’s your net worth.

Example: If your total assets = ₦10m and your liabilities = ₦4m, then your net worth = ₦6m.

You can do this manually in a notebook or on a simple Google Sheet. Some people even check it every three months like a financial “check-up”.

Why Knowing Your Net Worth Changes Everything

Your net worth is your financial compass. It shows whether you’re moving forward, backward, or standing still.

It gives you a full picture of your finances, not just your account balance.
It helps you set realistic financial goals (like buying a home or paying off debt).
It keeps you accountable because numbers don’t lie.
It helps you know when you can take risks, invest, or say “no” to certain expenses.

How To Grow Your Net Worth (Even on a Nigerian Salary)

It’s tough to “save and invest” when fuel prices, food, and rent keep rising. But the goal is to make it.

Here’s how to build your net worth over time:

1. Save consistently

Even if it’s ₦10k a month. Use saving apps like Cowrywise, PiggyVest, or Bamboo to automate your savings. It adds up faster than you think.

2. Reduce debt

Clear high-interest loans first. Avoid new ones unless they’re productive (like for business or education).

3. Invest smartly

Invest in mutual funds, real estate, or low-risk treasury bills. Don’t chase quick profits or “double your money” schemes. Download Bamboo, Risevest, or Ladda to access investment opportunities.

4. Grow multiple income streams

Side hustles, freelancing, digital gigs, or small businesses can boost your earnings faster than cutting expenses.

Common Net Worth Mistakes Nigerians Make

Counting everything you own, including your iPhone and designer sneakers. (They lose value fast.)
Ignoring debts or “small” loans.
Comparing your net worth to people on Instagram.
Forgetting to update your net worth yearly.

When Your Net Worth Is Negative — Don’t Panic

Most young Nigerians start with negative net worth, especially if they have loans or debts. It’s normal.

The key is to create a plan:

Write down all debts and interest rates.
Prioritise high-interest ones.
Start paying off the small ones first for motivation.
Save even small amounts alongside repayments.

The Bottom Line: Know Your Worth And Grow It

Your net worth tells your financial truth. It shows where your money has been, where it is, and where it’s going.

When you know your net worth, you can:

Make smarter financial decisions.
Plan realistically.
Grow with intention.