top of page
  • Facebook
  • Twitter
  • Instagram

Why Every Woman Needs a Spending Plan (Not a Budget)

The word "budget" has a feelings problem.


Say it out loud. Feel what happens in your body. For most people, most women especially, the word budget lands somewhere between obligation and guilt. It conjures spreadsheets covered in red. A list of things you're not allowed to have. A monthly reminder that you're doing it wrong.


And so they don't do it. They open the spreadsheet in January with the best of intentions, something comes up in February, and by March the whole exercise has been quietly abandoned, along with the low-key shame that comes with it.


Here's what I want you to understand: that is not a discipline problem. That is a framing problem.


The budget is broken. The spending plan is not.


They look similar on the surface both involve tracking income and expenses. But the psychological difference between them is the difference between a diet and a way of eating. One is about restriction. One is about intention. And only one of them is something you can actually sustain for the rest of your life.


This is the article I wish someone had handed me before I spent years believing I was bad at budgeting when really, I was just using the wrong tool.


I used to think I was bad at budgeting, because on a month-to-month basis, I couldn't stick to the number in each category. Something would inevitably come up that would "wreck" my budget for the month. Then I realized that the categories didn't matter, and from month to month, being "over budget" by $100 wasn't going to ruin my financial situation. Zooming out and taking a 40,000-foot view allowed me to reframe the bad at budgeting narrative entirely.


Why Typical Budgets Fail (and It's Not Your Fault)

Traditional budgets are built on a scarcity model. They start from the premise that your spending is the problem: that you have too much of it, that it needs to be restricted, that the goal is to spend as little as possible.


That premise is both financially inaccurate and deeply counterproductive.


Financially inaccurate because the gender wealth gap is not caused by women overspending on lattes. It is caused by wages that have been structurally suppressed, investing gaps rooted in confidence barriers the financial industry created and sustained, unpaid caregiving work that strips years of earning and compounding from women's financial lives, and a system that was not designed to serve us.


Blaming your coffee order for your financial situation is not just ineffective it's a distraction from the real story.


Counterproductive because restriction triggers rebellion. Any behavioural economist will tell you that the more you frame something as "off limits," the more power it has over you. Budgets built entirely on what you cannot spend create the exact psychological conditions that make you want to spend it.


This is why most budgets fail by February. Not because you lack discipline. Because the model itself is working against your brain. If you want an easy-to-follow Wealthy Woman's Spending Plan, download my template and let's get started.


So What Is a Spending Plan, Exactly?

A spending plan is a forward-looking, intentional decision about where your money goes made by you, for your life, based on your values. That's the whole definition.


The keyword is intentional. A spending plan doesn't tell you what you can't have. It asks you to decide in advance what you want, and then make sure the math supports it.


It starts from abundance, not scarcity. Instead of "how much can I cut?" it asks "what do I actually want my money to do?" Travel? A down payment? Investing for retirement? Paying off student loans? Sending your kids to camp? All of the above?


Once you know what you want, the spending plan helps you build a month that funds it.

That means your morning coffee is in the spending plan, because you chose it consciously and it fits within a financial picture that is also funding your TFSA, your savings goal, and your long-term investments. There is no guilt attached to it. Guilt only exists when spending is unexamined. When you've looked at the full picture and made a deliberate choice, the coffee is just coffee.


This is what financial freedom actually feels like. Not spending nothing. Spending intentionally.


The Real Difference: Budget Tracker vs. Spending Plan

Let me put this side by side so the distinction is impossible to miss. Same tool. Completely different relationship with money.

A budget tracker:

A spending plan:

  • Starts with restriction ("how do I spend less?")

  • Is built around categories of limitation

  • Treats your past spending as the problem

  • Creates guilt when you deviate

  • Measures success by how little you spend

  • Often abandoned when life doesn't cooperate

  • Starts with intention ("what do I want my money to do?")

  • Is built around your actual values and goals

  • Treats your future as the project

  • Creates clarity when something doesn't fit

  • Measures success by alignment between spending and priorities

  • Flexible enough to adjust when life changes

And the relationship you have with money matters. Because the woman who dreads opening her bank app is going to make different decisions, usually worse ones, than the woman who opens it with curiosity and confidence.



Why A Spending Plan (and not a Budget) Matters Especially for Women

Women have been told for decades that their financial problems are behavioural. That they spend too much. That they save too little. That if they just cut back and tried harder, the math would work out.


That narrative is not just unhelpful, it is a deliberate misdirection from the structural realities of women's financial lives.


Women earn less, on average, across nearly every industry and seniority level. Women take on a disproportionate share of unpaid domestic and caregiving labour that directly reduces their paid earning hours, career advancement, and pension accumulation. Women live longer and therefore need more retirement savings than men, not less. Women are charged more for equivalent products and services, the literal pink tax, compounding the financial disadvantage from a different angle entirely. And we have less leisure time than our male counterparts.


A spending plan doesn't fix any of that. But it does give you the clearest possible picture of your own financial reality, which is the only place from which you can make powerful decisions.


When you know exactly where your money goes, you stop being a passive participant in your own financial life. You become the person making the decisions. And that shift from passive to intentional is where wealth building actually starts.


How to Build Your Spending Plan: Step-by-Step

You need three things: your income, your fixed expenses, and a willingness to be honest about the rest.


Step 1: Start with your income, all the sources of it

Write down every dollar coming into your household each month, after tax. Include your salary or wages (net, not gross), any side income, freelance or contract work, child support or spousal support received, investment income or dividends, and any other consistent income sources. If your income varies month to month, use a conservative average the number you can reliably count on, not the best month you've ever had.


✨ Tip: Need help tracking your multiple income sources? I have built a quick and easy Multi-Income template to help you out.


Step 2: List your non-negotiables

These are the expenses that exist regardless of your choices, the bills that come whether you think about them or not. Add these up. Subtract from your income. The number left is what you actually have to work with.

  • Rent or mortgage payment

  • Property tax (if not included in mortgage)

  • Utilities (hydro, gas, water)

  • Internet and phone

  • Insurance (home, tenant, car, life, health, etc.)

  • Minimum debt payments (student loans, car loans, credit card minimums)

  • Childcare or dependent care costs

  • Transit pass or essential transportation costs


Step 3: Pay yourself first. Savings and investments are not optional

Before you allocate a single dollar to discretionary spending, decide what you are saving and investing this month. Your TFSA, your RRSP, your emergency fund, your savings goal treat these exactly like your rent: non-negotiable, paid first, not up for discussion.


When you save what's left at the end of the month, there is usually nothing left. When you save before you spend, you build wealth by default.


Step 4: Allocate your discretionary spending intentionally

Now, with full visibility into what remains, make deliberate choices about everything else.

  • Groceries and household supplies

  • Dining out and takeout

  • Personal care (haircuts, skincare, salon)

  • Clothing and shopping

  • Entertainment (streaming, events, activities)

  • Fitness and wellness

  • Travel and vacations (monthly savings toward an annual amount)

  • Gifts and celebrations

  • Professional development

  • Anything else that is part of your life and matters to you


The goal is not to minimize these categories. The goal is to choose them consciously and to make sure the total doesn't exceed what's available after Step 3.


Step 5: Check the math and adjust

Income minus non-negotiables minus savings contributions minus discretionary spending should equal zero. Not because you're spending every dollar, but because every dollar has been assigned somewhere and has a job.


If you have money left over, it goes into an additional savings category. If you're over, you look at the discretionary categories and make a choice about where to adjust. That's a completely different relationship with the same math.


One framework I like is Maggie Sellers' Hot Smart Rich breakdown:

But depending on your age, life stage, and where you live, these numbers will shift and change.


How to Actually Stick to It

Building the spending plan is the easy part. A few things that make the difference:

  • Review it monthly, not daily. Daily tracking creates obsession. Monthly reviews create insight. Once a month, look at what you planned and what actually happened. Adjust next month's plan accordingly. Five minutes. That's all it takes.

  • Build in a "life happens" category. Call it flex, buffer, or miscellaneous but put $50-$200 in it depending on your income level. This is for the birthday gift you forgot, the co-pay you didn't anticipate. When it's planned for, it doesn't blow up the whole month.

  • Don't start over when something goes off-plan. The spending plan is not a test you fail. It's a tool you use. The women who build lasting wealth are not the ones who have perfect months -- they're the ones who keep showing up after the imperfect ones.

  • Give yourself a "joy" allocation. An amount of money each month that is yours to spend on whatever you want, with zero justification required. It could be an $8 latte, expensive coffee beans, a bottle of wine, cozy pyjamas, or a candle you love. Whatever brings you joy is what you should spend those dollars on, guilt-free.


The Spending Plan Template

I built this template because I wanted something that actually reflected how women's financial lives work. Not a generic household budget that assumes two incomes and a mortgage and nothing else.


Here's what's inside:

  • Annual spending plan: full-year income and expense overview with after-tax calculations

  • Monthly spending plan: 12 months of category-by-category tracking

  • Savings and debt repayment projections

  • Projected balances by month: so you can see where you're going, not just where you've been

  • Built-in budget pie chart: a visual breakdown of your spending

  • Pre-filled with sample figures so you can see how it works before you put in your own numbers



Frequently Asked Questions on a Spending Plan

What is the difference between a spending plan and a budget?

A budget starts from restriction — it limits how much you can spend in each category.

A spending plan starts from intention — it asks you to decide in advance where you want your money to go, based on your values and financial goals. Most people find spending plans more sustainable because they focus on alignment rather than deprivation.


What is a spending plan?

A spending plan is a forward-looking document that allocates your monthly income across all of your financial priorities (savings, investments, fixed expenses, and discretionary spending) before the month begins. Every dollar is assigned intentionally, giving you full visibility and control over your financial life.


Why do budgets fail?

Budgets fail primarily because they are built on a restriction model that triggers psychological resistance. When spending is framed as something to cut rather than something to choose, it creates a cycle of deprivation and rebound spending that is difficult to sustain.


How do I create a spending plan?

To create a spending plan: (1) Calculate your total monthly after-tax income. (2) List and subtract all fixed, non-negotiable expenses. (3) Allocate your savings and investment contributions first. (4) Intentionally allocate the remaining income across discretionary categories. (5) Ensure income minus all allocations equals zero. Review and adjust monthly.


How is a spending plan different from the 50/30/20 rule?

The 50/30/20 rule prescribes fixed percentages. A spending plan is more personalized as it asks you to allocate based on your actual financial situation, goals, and values. A spending plan adjusts to fit your life rather than asking your life to fit a formula.


Do I need to track every purchase in a spending plan?

No. A spending plan is built monthly, not tracked daily. At the start of each month, you assign your income to categories. At the end of each month, you review what happened and adjust the following month's plan. The monthly review is the essential habit -- not daily monitoring.


Should savings be included in a spending plan?

Yes -- savings and investment contributions should be one of the first allocations in your spending plan, treated as a non-negotiable expense. Paying yourself first makes wealth-building automatic and intentional rather than aspirational.


About Janine Rogan

Janine Rogan is an award-winning CPA, TEDx speaker, and bestselling author of The Pink Tax: Dismantling A Financial System Designed To Keep Women Broke. She is the founder of The Wealth Building Academy, where she teaches women to invest with confidence and build lasting wealth without the shame, jargon, or finance-bro energy.


 
 
 

How to Track Multiple Income Streams Without Losing Your Mind

The nine-to-five is no longer the whole story.


More women than ever are earning from more than one source a salaried role plus dividend income from investments, a full-time job alongside a growing side business, freelance contracts that fill the gaps, rental income from a property, royalties, consulting fees. The income landscape for women has gotten genuinely more interesting in the last decade.

And significantly harder to track.


When you have one employer and one paycheque, your financial picture is relatively straightforward. When you have four income sources with different amounts arriving at different times, the picture gets complicated fast. How much did I actually make this month? How much of that was active income versus passive? Am I on track for my annual goal? Where is the tax exposure?


Most income tracking advice, like most financial advice, was written for the single-paycheque model. It is not built for the financial reality of women who have built something more layered. This post is.


Why Most Women Don't Track Their Full Income

Here's what I hear most often: "I know what my salary is that's the main thing."


And that's true, up to a point.


Your salary is your foundation. But if you're also earning dividends, side income, or any form of variable income, and you're not tracking it you're making financial decisions based on an incomplete picture.


That has real consequences. It means your spending plan is built on partial information. It means you may be under-saving relative to your actual income. It means you don't know whether your passive income is growing meaningfully year over year. It means tax season always feels like a surprise.


There's also a psychological piece worth naming. Women are socialized to underestimate what they earn and what they're worth. Tracking your full income every stream, every month is a direct counter to that. When you see the actual number, including everything you've built beyond the salary, it changes how you see yourself financially.


Are you ready to start tracking your income? Get started with my Multi-Income Tracker →


The Types of Income Worth Tracking

Before we get to the how, let's get clear on the what. Income tracking only works when you're tracking everything, not just the obvious sources.


Active income

This is income you earn by exchanging your time: your salary, hourly wages, freelance fees, consulting contracts, speaking fees, coaching revenue, any service-based business income. Active income is the most familiar and typically the most consistent. It's also the most time-constrained, which is exactly why building other streams matters.


Passive and semi-passive income

This is income that earns without a direct time exchange: dividends from investments, rental income, royalties, income from digital products, affiliate revenue, interest from high-interest savings accounts or GICs. Passive income usually requires significant upfront work or capital to establish. But once it's running, it earns without you having to show up. This is the income that builds long-term wealth independence.


Variable and project-based income

Bonuses, commissions, contract payments, seasonal revenue, irregular freelance work. This income is real and meaningful, but it doesn't arrive on a predictable schedule which makes it easy to spend reactively and difficult to plan around without a tracking system.


Dividend income by account type

For women who are investing, dividend income deserves its own tracking layer specifically by account type. Dividends earned inside a TFSA are tax-free. Dividends inside an RRSP are tax-deferred. Dividends in a non-registered account are taxable. Knowing where your dividend income is sitting, not just how much you're earning, is essential for understanding the real after-tax picture.


Why Building Multiple Income Streams Matters for Women Specifically

The gender pay gap is real. The gender wealth gap is larger and less discussed. And one of the most reliable ways women can begin to close their personal wealth gap, while the systems that created it move with agonizing slowness toward equity, is by building income that isn't entirely dependent on a single employer's decision about what they're worth.


When your only income stream is your salary, your financial life is entirely subject to one organization's performance review process, one manager's perception of your value, one company's layoff decisions. That is a concentration of risk that women who already face structural barriers to equal pay and advancement carry disproportionately.


A second or third income stream doesn't eliminate that risk. But it reduces your dependence on any single source. It gives you options. It gives you the ability to walk away from a situation that isn't serving you because your financial survival doesn't depend entirely on staying.


That is what financial independence actually means in practice.


How to Track Your Income: The System

Tracking multiple income streams does not have to be complicated. It requires one thing: a single place where all of your income lives, updated consistently. If you want a quick & easy way to track your income sources, grab my Multi-Income Tracker and follow along.


Step 1: Categorize your income sources

Start by listing every income source you currently have. Be thorough -- even irregular or small amounts count.

  • Full-time employment (FTE) is your primary salary or wages

  • Dividends from TFSA, RRSP, FHSA, RESP, non-registered accounts

  • Side hustle from freelance, consulting, content, service business

  • Rental income

  • Royalties or licensing fees

  • Other / miscellaneous is anything that doesn't fit the above


Step 2: Record income when it arrives, not when you expect it

Record your income in the month it actually arrives -- not the month you invoiced, not the month you expected it. Tracking based on what should have come in creates a false picture.


Tracking what actually arrived tells you the truth.


Step 3: Track monthly totals and running annual total

Monthly total is the full picture of what came in this month across all sources. This is what your spending plan is actually built on.


Running annual total is the sum of all income received since January 1. This number tells you whether you're on track for your annual goal and gives you a clear view of your income trajectory over time.


Step 4: Watch for patterns

After three to six months of consistent tracking, the data starts to tell you things you couldn't see before. Which months are consistently strong? Which are lean? Is your side income growing, stagnant, or inconsistent? Is your dividend income compounding visibly year over year?


You can't optimize what you can't see.


Step 5: Separate what's yours from what's the CRA's

Variable and self-employment income comes without tax withheld at source. A simple rule: set aside 25-30% of any self-employment or variable income into a separate account the moment it arrives. Don't touch it.


The Multi-Income Tracker Template

I built this template for women who are earning from more than one place and need a single, clear view of their full income picture without maintaining five different spreadsheets or trying to reconstruct the year from bank statements every April.


Here's what's inside:

  • Monthly income tracker: log income across up to 6 categories, every month of the year

  • Annual income goal: set your target and watch your progress toward it in real time

  • Best month, worst month, and monthly average, automatically calculated

  • FTE average and dividend average: tracked separately so you can see how each stream is performing

  • Dividend planner by account type: track dividend income from TFSA, RRSP, FHSA, RESP, non-registered accounts, and other sources, month by month, with annual totals


Works with Microsoft Excel, Google Sheets (free), and Apple Numbers.


Already tracking income? Great! Pair this with the Net Worth Tracker to see exactly how your growing income is translating into growing wealth.



Frequently Asked Questions on How to Track Multiple Income Streams

How do I track income from multiple sources?

To track income from multiple sources: (1) Categorize every income stream. (2) Record income when it arrives, not when expected. (3) Maintain a single spreadsheet where all sources are consolidated monthly. (4) Track monthly totals and a running annual total. (5) Review quarterly for patterns in your income trajectory.


What counts as multiple income streams?

Multiple income streams include any combination of: salaried employment, freelance or consulting fees, dividend income from investments, rental income, side business revenue, royalties, speaking or coaching fees, affiliate income, interest income, and digital product sales.


How do I track dividend income?

Track dividend income by the account it's earned in -- TFSA, RRSP, FHSA, or non-registered. Dividends inside a TFSA are completely tax-free; dividends inside an RRSP are tax-deferred; dividends in a non-registered account are taxable in the year received.


Should I track gross or net income?

Track both. Record your gross income for each source so you understand your full earning picture. For employment income, also track your net (after-tax) amount, since that is what your spending plan is based on. For self-employment income, track gross and manually set aside a percentage for tax.


How do I handle irregular or inconsistent income?

Record irregular income in the month it actually arrives. Build your spending plan around your most conservative estimate of monthly income -- your floor, not your ceiling. When a strong month arrives, direct the surplus intentionally: top up savings, make an extra investment contribution, or reduce debt.


Do I need special software to track multiple income streams?

No. A well-structured spreadsheet is one of the most effective income tracking tools available -- full visibility, complete customization, and no subscription fees. For most women with two to five income streams, a dedicated tracking spreadsheet is more than sufficient.

About Janine Rogan

Janine is an award-winning CPA, TEDx speaker, and bestselling author of The Pink Tax: Dismantling A Financial System Designed To Keep Women Broke. She is the founder of The Wealth Building Academy, where she teaches women to invest with confidence and build lasting wealth without the shame, jargon, or finance-bro energy.


 
 
 

How to Calculate Your Net Worth in less than 30 Minutes

Updated: Jul 16

Most women I talk to have never sat down and written their net worth. Not because they don't care about money. Not because they're "bad" at math. But because no one ever told them this was something they were supposed to do, or showed them how.


Here's the thing: your net worth is the single most important number in your financial life. It tells you more about your financial health than your salary, your savings account balance, or the number on your last paycheque. And calculating it takes less time than your morning coffee run.


So let's do it together. Right now.


By the end of this post, you'll know exactly what your net worth is, what it actually means, and how to track it going forward with a template I built to make it effortless.

What Is Net Worth, Exactly?

Your net worth, put simply, is what you own minus what you owe. That's it. One sentence. No finance degree required.


Net Worth = Total Assets (what you own) − Total Liabilities (what you owe)


Your assets are everything you own that has value: your savings, your investments, your home, your car, your TFSA, your RRSP.


Your liabilities are everything you owe: your mortgage, your student loans, your car loan, your credit card balance, your personal loans, and your line of credit.

Add up all your assets, and then all your liabilities. Subtract one from the other, and you have your net worth.


It can be positive. It can be negative. Both are useful pieces of information. And regardless of where you land today, the goal is always the same: grow the number, month by month, decision by decision.


An important note before we go further: your net worth is not your self-worth. Whatever number you find is information, not a verdict. Don’t judge yourself for where you’re starting. The goal is always to move the number forward from here.

Why Your Net Worth Matters More Than Your Salary

Salary is income. Net worth is wealth. They are not the same thing.


You can earn $120,000 a year and have a net worth of $8,000 if your lifestyle, debt, and spending habits are eating into everything you make. And you can earn $60,000 a year and have a net worth of $150,000 if you've been investing consistently and living below your means.


The number that tells the real story is net worth.


This matters especially for women. The gender wealth gap, not the wage gap, is the financial statistic that doesn't get nearly enough attention. On average, women retire with significantly less wealth than men, even when they've earned comparable incomes throughout their careers. The reasons for this are systemic: the motherhood penalty, the investing gap, and lower baseline salaries that compound over time. Women make up 51% of the global population but hold only 30% of global wealth. Add any level of intersectionality, and the gap gets larger.


Tracking your net worth regularly doesn't close the gender wealth gap on its own. But it does give you the visibility to make intentional decisions, which is exactly where building wealth starts.

How to Calculate Your Net Worth: Step-by-Step


You'll need about 30 minutes, a notebook or spreadsheet, and access to your account balances. Grab my Net Worth Template before you start, it does the math for you automatically.


Step 1: List Everything You Own (Your Assets)

Start with the easy ones, the accounts you can look up in under two minutes. Write down the current value of everything. Not the original cost. The current value.


Liquid assets (things you can access quickly):

  • Chequing account balance

  • Savings account balance

  • Emergency fund

  • Cash or other valuables (e.g. gold)

Registered investment accounts:

  • TFSA (Tax-Free Savings Account), current market value

  • RRSP (Registered Retirement Savings Plan), current market value

  • FHSA (First Home Savings Account), if applicable

  • RESP (Registered Education Savings Plan), if applicable

  • Pension value, if applicable (check your most recent statement)

Non-registered investments:

  • Brokerage accounts

  • Stocks, ETFs, mutual funds held outside registered accounts

  • Dividends reinvested

Physical assets:

  • Real estate, current market value of your home (not what you paid; what it's worth today)

  • Vehicle, current resale value (not what you paid; look up the Carfax or AutoTrader value)

  • Business equity, if you own a business

  • Life insurance with cash value


💡Quick tips: You don't need to be exact. An estimate within $1,000–$2,000 is fine for your first calculation. You're building a picture, not filing a tax return. And only include physical assets you’d realistically sell. If you don’t plan on ever selling it, like an engagement ring, leave it off the list.


Step 2: List Everything You Owe (Your Liabilities)

Now the other side. Be honest here, this is just information. There is no shame in this exercise. Numbers are neutral.

  • Mortgage balance outstanding

  • Home equity line of credit (HELOC) balance

  • Car loan balance

  • Student loan balance

  • Credit card balances (total across all cards)

  • Personal loan balance

  • Line of credit balance

  • Any money owed to family (if it's a formal repayment arrangement)


List the current outstanding balance, not the original loan amount, not the monthly payment. What do you actually owe today if you paid it all off?


Step 3: Do the Math


Total Assets − Total Liabilities = Your Net Worth


That number, either positive or negative, is your starting point.


What Does a "Good" Net Worth Look Like?

This is the question everyone wants answered, and the one I want to reframe for you. There are benchmarks. A commonly cited one is that by age 35, you should have roughly 1x your annual salary saved. By 45, 3x. By 55, 5x.


I share these not to create panic, but to give you a reference point. A benchmark is useful but it is not a verdict on your financial character.


What I care more about than the number itself is the direction. Is it growing? Month over month, year over year, is the gap between what you own and what you owe getting wider in your favour?

  • If you're in your 20s and your net worth is negative because of student debt, that is normal. That debt was an investment in your earning potential, and if you're building toward repayment and starting to invest, you're on the right track.

  • If you're in your 30s or 40s and you've never calculated your net worth before, this moment is your starting point, not a place to judge yourself for what you didn't do earlier. The best time to start was ten years ago. The second-best time is today.


I've been tracking our joint household net worth (almost) every month since 2012 which means I have almost 15 years of data. Some years our net worth didn't budge much, and some years that number went down. But over the course of 15 years together my husband and I have been able to turn our $17,000 net worth into 7-figures.

What to Do Once You Have Your Net Worth Number

Write it down. Date it. That's step one. Your net worth on this date, at this moment, is your financial baseline. Every decision you make from here where you invest, how you handle debt, how you allocate your next raise works toward moving that number in the right direction.


Then come back in 30–60–90 days and recalculate. This is the part that most people skip. Calculating your net worth once is interesting. Tracking it every month or quarter is transformational.


Here's what happens when you track monthly:

You start to see patterns. Maybe your credit card balance keeps creeping up. Maybe your TFSA contributions are barely moving the needle because you're not investing the cash. Maybe, and this is the one that surprises most people, your net worth is actually growing faster than you thought.


Visibility creates accountability. And accountability creates results.

Common Mistakes When Calculating Net Worth

A few things that trip people up the first time they calculate their net worth:

  1. Using the original price of assets instead of the current value, Your car is not worth what you paid for it. Your condo may be worth more than you paid for it. Use today's value for everything.

  2. Forgetting registered account balances, Your TFSA and RRSP count as assets. Log in to your brokerage or bank app and get the number.

  3. Including only "big" liabilities, That $3,200 credit card balance counts. That $800 personal loan counts. Include everything.

  4. Rounding too aggressively, A rough estimate is fine for a starting point, but the more precise you are, the more useful the exercise becomes.

  5. Doing it once and never again, Calculating your net worth once is better than never. Tracking it monthly or quarterly is where the real insight lives.

Your Net Worth Is Not Your Self-Worth

I want to say this as you look at your number. Your net worth is not your self-worth.


Whatever you find when you do this calculation, a number that's lower than you hoped, a mountain of debt you've been quietly carrying, a total that feels embarrassingly small for your age and salary, it is information. Not a verdict.


You are not defined by the number on the page. But you have the power to change it. You can't take a head-in-the-sand approach. The only way to grow it is to look at it.

The Net Worth Template

I built this template because I wanted something that was actually simple to use, not a 40-tab monstrosity that requires an accounting degree to navigate.


Here's what's inside:

  • Net worth tracker for Singles, 24 months of assets and liabilities

  • Net worth tracker for Couples, dual entries for all accounts, including RRSP, TFSA, and vehicles

  • Automatic month-over-month change calculation (in dollars and percentage)

  • Retirement target calculator using the 4% rule so you know the number you're working toward

  • Visualization tab to chart your net worth over time, so you can see the growth


You fill in your numbers. It does the math. You track the trend. Works with Microsoft Excel and Google Sheets (free).



Frequently Asked Questions on How To Calculate Your Net Worth

How do I calculate my net worth?

To calculate your net worth, add up everything you own (assets), savings, investments, real estate, vehicles, and registered accounts like your TFSA and RRSP, then subtract everything you owe (liabilities) like mortgage, student loans, credit cards, car loans, and any lines of credit. The resulting number is your net worth. Net Worth = Total Assets − Total Liabilities.


What counts as an asset for net worth?

Assets include: chequing and savings accounts, TFSA and RRSP balances, non-registered investment accounts, real estate (at current market value), vehicles (at current resale value), business equity, and any cash value in life insurance policies.


What counts as a liability for net worth?

Liabilities include: mortgage balance, home equity line of credit (HELOC), car loan, student loans, credit card balances, personal loans, and any outstanding lines of credit.


What is a good net worth by age?

A commonly referenced benchmark is 1x your annual salary saved by age 35, 3x by age 45, and 5x by age 55. However, these are guidelines, not rules, and they don't account for the reality of the gender wage gap, career breaks, or late starts. What matters most is the direction: is your net worth growing month over month?


How often should I calculate my net worth?

Calculate your net worth monthly. A single calculation gives you a snapshot; monthly tracking gives you the trend. Watching your net worth grow even by a few hundred dollars is one of the most motivating financial habits you can build.


Is a negative net worth bad?

A negative net worth, where you owe more than you own, is common especially in your 20s when student debt is high and asset accumulation is just beginning. It is not a permanent condition and it is not a moral failing. It is a starting point. The goal is to move the number in the right direction, consistently, over time.


What is the gender wealth gap?

The gender wealth gap refers to the difference in accumulated wealth between men and women over a lifetime. Even when women earn comparable salaries, they tend to retire with significantly less wealth due to the motherhood penalty, unpaid caregiving work, lower participation in investing, and other systemic factors. Tracking your own net worth is a first step toward closing your personal wealth gap.

About Janine Rogan

Janine is an award-winning CPA, TEDx speaker, and bestselling author of The Pink Tax: Dismantling A Financial System Designed To Keep Women Broke. She is the founder of The Wealth Building Academy, where she teaches women to invest with confidence and build lasting wealth without the shame, jargon, or finance-bro energy.


 
 
 
bottom of page