Net worth is the most honest measure of financial health. It is what you own minus what you owe. Calculating it regularly tracks progress toward financial freedom.
Assets: home 5M + savings 500k + car 300k = 5.8M | Liabilities: mortgage 3M + car loan 200k = 3.2M | Net worth = 2.6M
Everything with monetary value: property, vehicles, savings, investments.
Common for young people. Focus on the trend improving over time.
Quarterly or annually. Steady growth over years is the goal.