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Patrimonio

How to calculate and read your net worth

A tracker is useful only when its numbers make sense. Learn how to read net worth, cash flow and transactions in the right order to understand how your month is going.

Three views, one financial story

Net worth shows where you stand today. Cash flow shows the direction of travel. Transactions explain every change. Read together, they prevent misleading conclusions.

Growing net worth with negative cash flow may come from asset revaluation rather than saving; strong cash flow with flat net worth may point to missing records.

Net worth: the snapshot

Net worth is the value of active accounts and tangible assets, expressed in your main display currency. The trend shows whether growth is lasting, while composition reveals where wealth is concentrated.

Accounts and assets excluded from statistics remain outside the calculation, and each participant decides independently whether a shared account belongs in personal statistics.

Cash flow: the direction

Cash flow compares money received and money spent during a period. Start with the period balance, then compare income and expenses, and finally inspect categories. Transfers between your own accounts are excluded.

  • Look for the category behind an unusual month.
  • Compare the same month across years for seasonal costs.
  • Use recurring entries to understand your fixed monthly base.

Transactions: the evidence

Every total traces back to transactions with amount, account, category and date. If a result looks surprising, review and correct the underlying entry and all views update together.

A five-minute routine

Log transactions when they happen and check cash flow once a week. At month end, ask whether net worth is higher than thirty days earlier and why. A clear answer is more useful than a rigid budget.

Start reading your own numbers

Create a free account, set up your accounts and see all three views fill with your real data.