Understand your net worth with our interactive tool

Understand your net worth with our interactive tool Jul 17, 2023 4:57:01 PM Using our Connected Accounts feature, you can see your total net worth on the Betterment app. We make it simple to view your net worth. That’s your investments, cash, and debts, all on one easy-to-read screen. Why it matters: Net worth is a good indicator of your financial stability because it shows what you have left over after you pay all your debt. See your net worth: Here’s how you can see your total net worth on the Betterment desktop and mobile app. Once you’re logged in, you’ll see the Net worth section. To view your net worth, if you’re on mobile, tap the section or if you’re on desktop, click See breakdown. On the Net worth screen, you’ll see the total value of your internal Betterment accounts and your external accounts. To add external accounts, click Manage connected accounts and follow the prompts. You’ll need to do this for all external accounts to see your total net worth. Now that you know how to set up and view your net worth, what does it all mean? According to the FDIC, net worth is a better measure of financial stability than income for two reasons. Your income could be decreased due to a job loss or reduction in work hours. Your income doesn’t indicate how much debt you have or how much savings or additional assets you have. Take this example: To illustrate what net worth means, consider two people who both make $100,000 per year. Person 1 has $450,000 in cash/investments and $420,000 in debt (net worth: $30,000) Person 2 has $225,000 in cash/investments and $10,000 in debt (net worth: $215,000) All else equal, Person 2 has a higher net worth and is in a better position to create long-term wealth. The big picture: Looking at your finances beyond your income can help you plan for the future. By looking at how much debt you have in addition to savings, you can create a clearer plan for long-term wealth creation. To increase your net worth, you can either reduce liabilities (debt like loans and credit card debt) or increase assets (accounts like cash savings and investments). You have two levers to pull. At Betterment, we give you the tools to increase your net worth. You can set up goals with automated deposits using a high-yield cash account or investment account. Plus, we’ll help you estimate how much you need to save with our goal forecaster tool.