Home › Save › Net worth & budgeting
As of Oct. 15, 2026
Net worth is what you own minus what you owe. A budget leftover is what you take in minus what you spend. Public guides from Investor.gov (SEC), the CFPB, and FDIC Money Smart teach both in plain steps. This page shows those published definitions with dates, a situation picker for what to do next, and two calculators that only do the math you enter.
Not financial advice. This page republishes what Investor.gov (SEC), the CFPB, and FDIC Money Smart publish about net worth and budgeting, with dates. It does not tell you how much to save, which debts to pay first, or where to put money. The calculators only subtract numbers you type in. Confirm account terms and insurance coverage with your bank or credit union.
Two formulas, both arithmetic only — then published framing from free federal education materials.
Sources: SEC Investor.gov · FDIC Money Smart for Adults · CFPB monthly budget PDF · Federal Reserve SHED 2025.
Match your situation to the published framing below. The "best move" is which education step or tool to open next — not buy/sell advice.
| Your situation | Best move | Why (source) |
|---|---|---|
| My expenses are higher than my income this month | Track income and spending first (cash-flow budget). Cut or delay non-essentials until income covers expenses. Open calculator | CFPB budget tool: if expenses > income, look for cuts. FDIC Money Smart Module 4: prioritize when money is short. (CFPB monthly budget PDF · FDIC Money Smart for Adults) |
| I have little or no emergency cash set aside | Size a starter cushion with published ranges, then park it where it is FDIC/NCUA-insured. Go | Emergency savings is a common protection step before other goals; see our emergency-fund page for CFPB/FDIC/Fed published ranges. (Federal Reserve SHED 2025 · FDIC Money Smart for Adults) |
| I have high-interest debt (for example credit cards) | List balances and rates; compare payoff order (avalanche vs snowball) or debt-relief options if you are behind. Go | Debt lowers net worth (liabilities). Investor.gov treats debts as liabilities on the net worth statement. (SEC Investor.gov) |
| I have a monthly leftover (income > expenses) and no urgent debt crisis | Pay yourself first (automatic transfer), then compare where cash earns interest. Go | Investor.gov: automatic deposit into savings or investing; include a savings category in your monthly tracking. (SEC Investor.gov) |
| I want an app to track spending after I know the math | Compare budgeting apps on features and fees (catalog, not a ranking). Go | Tools help after you understand income − expenses; apps are optional. (CFPB Your Money, Your Goals) |
Sources: SEC Investor.gov · CFPB monthly budget PDF · CFPB Your Money, Your Goals · FDIC Money Smart for Adults.
Investor.gov: a net worth statement lists what you own (assets) on one side and what you owe (liabilities or debts) on the other. Subtract liabilities from assets. If assets are larger, you have a positive net worth; if liabilities are larger, you have a negative net worth. Update the statement every year.
FDIC Money Smart Module 10 key takeaway (paraphrased; see FDIC downloads for full curriculum): net worth is a good measure of financial stability. Calculate it by subtracting liabilities (money you owe others) from assets. An asset is something you own that has value; a liability is something you owe; equity is the value of an asset minus the liability related to that asset.
Sources: SEC Investor.gov · FDIC Money Smart for Adults. Full Money Smart Module 10 text is in FDIC's free participant guide downloads — we paraphrase the published definitions only.
| Assets (own) | Liabilities (owe) |
|---|---|
|
|
Examples are ordinary categories for a worksheet — not a required list. Use estimates you trust.
Formula shown: net worth = total assets − total liabilities. Enter category totals (or one combined total per side). Arithmetic only — we do not value your house or choose what counts.
CFPB monthly budget tool: (1) list your income, (2) list your expenses, (3) subtract total spending from total income. If income is more than expenses, you have money left to save or spend. If expenses are more than income, look at the budget to find expenses to cut. Educational and information purposes only — not a replacement for advice from a qualified professional.
Source: CFPB monthly budget PDF (part of CFPB Your Money, Your Goals).
FDIC Money Smart Module 4 (Your Spending and Saving Plan): build a monthly spending and saving plan that compares income and expenses, shows where money goes, and supports adjustments so money can meet your goals. When money is short, the module discusses prioritizing spending. Outcomes when you compare totals: income covers expenses, income exceeds expenses (room to save or spend), or expenses exceed income (need to cut or raise income).
Source: FDIC Money Smart for Adults Module 4 (Your Spending and Saving Plan) — paraphrase; see FDIC downloads for the full curriculum.
CFPB Your Money, Your Goals tools that fit this topic (toolkit updated June 2020):
Source: CFPB Your Money, Your Goals.
Investor.gov: many people build a saving and investing habit by paying themselves first — for example, having the bank automatically deposit money from a paycheck into a savings or investment account. If you are spending all your income and never have money to save or invest, start by cutting back on expenses.
Source: SEC Investor.gov.
About 50/30/20 and similar percentage splits: those rules are common in consumer media. This page does not attribute a fixed percentage split to CFPB or FDIC. We stick to the cash-flow and spending-and-saving methods those agencies publish.
Formula shown: leftover = monthly income − monthly expenses. Optional: savings rate = leftover ÷ income (shown only when income > 0). Matches the CFPB monthly budget steps (list income, list expenses, subtract).
We do not reprint Fed Survey of Consumer Finances (SCF) median net worth-by-age tables here. For those survey tables and usage terms, see federalreserve.gov directly.
Investor.gov: list assets (what you own) and liabilities (what you owe), then subtract liabilities from assets. Positive if assets are larger; negative if debts are larger. FDIC Money Smart Module 10 uses the same assets − liabilities formula.
CFPB monthly budget tool: list income, list expenses, subtract spending from income. If income is higher, you have money left to save or spend; if expenses are higher, look for cuts. FDIC Money Smart Module 4 builds a monthly spending and saving plan the same way.
Net worth = total assets − total liabilities (category totals you enter). Leftover = monthly income − monthly expenses. Optional savings rate = leftover ÷ income. Formulas are shown on the page; no product recommendations.
If expenses exceed income, CFPB says find expenses to cut. FDIC Money Smart Module 4 discusses prioritizing when money is short. Then use the situation picker on this page for the next education step (emergency fund, debt tools, or savings comparison).
No. We republish Investor.gov, CFPB, and FDIC Money Smart material with dates and do arithmetic on numbers you type. We do not tell you how much to save or which products to buy.
Estimates, not financial advice. Taxes, insurance, PMI and fees vary by lender, county and city; confirm with your lender, dealer and state agency before acting.