Be honest, when was the last time you checked your bank balance? Probably yesterday, right? Now, what about your net worth? Don’t worry if you just blinked in confusion; most Nigerians don’t even think about it until something forces them to. Between paying rent, funding side hustles, and sending “urgent ₦2k” to friends or relatives, who has time to calculate net worth?
But here’s the truth: if you truly want to understand your money, your future, and your financial strength, you need to know your total worth. It’s like a scorecard for your finances, showing whether you’re building wealth or just surviving.
What Exactly Is Net Worth?
In simple Nigerian English: your net worth = what you own minus what you owe. In other words, if you sold everything you own today and paid off every debt you owe, the amount left is your net worth. According to trusted sources, that’s the formula.
For example: Let’s say Ada has ₦2.5 million in savings, a used Toyota worth ₦2 million, and investments worth ₦1 million. That’s ₦5.5 million in total assets. But she also owes ₦1.2 million in loans and ₦300k in unpaid bills. Her total liabilities = ₦1.5 million.
Now subtract ₦1.5 million from ₦5.5 million, and Ada’s total worth is ₦4 million. See? Knowing your total worth isn’t about how much you make, it’s about how much you keep and grow.
Why It Matters
A big salary doesn’t automatically mean high valuation. You may earn ₦800,000 a month but owe ₦3 million in debt, and your total worth could still be negative. Meanwhile, someone earning ₦400,000 who owns a small car, some land in Ibadan, and has zero debt might have a positive net worth. Why? Because total worth measures the value of your assets minus liabilities, not just income.
Tracking your wealth gives you a realistic financial benchmark. It shows progress, when you’re slipping and it helps you set financial goals, decide where to cut back, and where to invest.
Step-by-Step: How to Calculate Your Net Worth
Here’s how you do it Nigerian style, no fancy jargon.
Step 1: List your assets
These are things you own that have value. Include:
Cash in your bank account, wallets, fintech apps (PiggyVest, Kuda, OPay, etc)
Investments in mutual funds, stocks, real estate, or side businesses
Valuables like your car, land, gold jewellery, even your MacBook if it has resale value
Anything else you could reasonably sell or convert to cash
Step 2: List your liabilities
These are things you owe. Think:
Loans (salary advances, student loans, loan apps, cooperatives)
Outstanding bills or rent owed
Buy-Now-Pay-Later debts, credit cards
Anything that drains your income and isn’t an asset
Step 3: Subtract liabilities from assets
Assets minus liabilities equals your net worth. If your assets total ₦10 million and your liabilities are ₦4 million, then your net worth is ₦6 million. Simple, right? The formula in financial textbooks is exactly that.
You can do this manually in a notebook or on a simple Google Sheet. Some people check it every three months like a financial check-up.
Realistic Tips to Grow Your Total Worth as a Nigerian
Now that you know how to calculate your net worth, let’s talk about how to grow your net worth because that’s the fun part.
Boost your assets: That side hustle you run after work? Keep building it. The more income you convert into assets like investments, real estate, or business equity, the higher your total worth gets.
Slash your liabilities: Debt is a sneaky net worth killer. Pay off high-interest loans, stop accumulating BNPL debts, and avoid impulse buys.
Check in regularly: Once you know your total worth, track it. Every three to six months, recalculate. If your net worth went down, ask why.
Don’t confuse income with wealth: A big salary is cool, but if expenses and debt are bigger, your net worth can still be low or negative.
Think long-term: Asset values can change over time. Real estate can rise, cars depreciate, and business income can fluctuate. Having a positive trend is the goal.
Wrapping Up: Know Your Number
So, ask yourself: “What’s my net worth right now?” Write down your assets, list your liabilities, subtract, and boom, you’ve got your net worth. From there, you decide whether you’re headed towards financial control or letting debt direct you.
Your total worth isn’t just a number. It’s a truth meter. It tells you where you are and gives you the power to decide where you want to go. Once you know your total worth, you’re no longer guessing, you’re acting.
Take charge. Calculate your wealth today. Then let it guide your steps towards financial freedom. Because in Nigeria, where side hustles hustle and bills never stop knocking, your valuation is your best friend.
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