Are you looking for the best FREE net worth app? Today I’m going to introduce you to my personal favorite net worth tracking app. This is the app I use to keep track of all my assets and liabilities and get a snapshot of my current financial status.
Before we dive into the best FREE app, let’s quickly review what net worth is and how it’s calculated.
What is net worth?
Your net worth is the value of all your assets (things you own) minus your liabilities (things you owe, or ya know, debt). Your net worth can be positive or negative! Net worth is like a snapshot of your current financial status. It’s a very important thing to measure when evaluating your financial situation. Everyone should know their current net worth status! Whenever you hear people discussing super wealthy individuals, like Warren Buffet or Jeff Bezos and saying that are worth $90 billion, they are referring to their net worth.
How is net worth calculated?
Net worth is calculated by adding up all of one’s assets and then subtracting all of one’s liabilities. It’s a really simple math problem!
For a more in-depth look at how to calculate net worth, check out my article How to Calculate Your Net Worth + Why You Need To.
The best FREE net worth app
About a year ago a friend introduced me to the Personal Capital app (it’s FREE!) for tracking net worth. I made the switch and I’ve never looked back. They have done an excellent job at making it user friendly, simple, and very functional. It actually connects to all your financial institutions (banks, IRAs, even 401ks, house loans- everything) and plugs the real-time numbers in. It automatically takes all your assets and subtracts your liabilities and shows your net worth!
Personal Capital has both an app and a website that are both fantastic. When I started using the app, it took me about 10 minutes to set it up and add in all of my accounts. I created a profile and then it prompted me to enter in all my assets and liabilities. I just followed the prompts!
Adding in my assets: For my assets I entered my bank institution, my husband’s 401k servicer, my private IRA account through Vanguard, and I was even able to enter my house value in (they use Zillow, so I just plugged in my address and my house’s Zestimate filled in automatically as an asset). You can also manually add in assets and liabilities. We own some real estate but we are involved with partners and anything the banks or mortgage would show wouldn’t be reflective of our actual equity in the properties, so I just added those in manually.
Adding in my liabilities: Then I added in all our liabilities, which right now is just our mortgage, which we have through Quicken. So I was able to link Quicken to it and it automatically pulled up the remaining balance on our mortgage as a liability.
In just seconds I had all my assets and liabilities (in their exact amount direct from the financial institutions) plugged in, and my net worth was calculated!
I was thrilled to see that ours was actually higher than I thought! In fact, when I first entered all our info into Personal Capital, we were at $99,000 net worth! Expert say the first $100,000 is the hardest, and after that there is crazy growth. Watching it go from $99,000 to $100k and now beyond that the last few months has been so motivating and exciting! I love watching our numbers grow.
I hope you have found this review and mini tutorial of how to use the Personal Capital app helpful. Keeping track of your net worth is a huge part of increasing your wealth and with this app it can also be really fun!