51% of Americans Don't Know This
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There ain't no money like roofing money. The roofing industry is one of the most lucrative and affords people many opportunities to achieve financial prosperity.
The problem is that year after year so many people have incredible years in sales and end up with nothing in their bank account to show for it.
What happens is that the best earning years can either be used to lay the foundation of your path in building generational wealth or can be a story full of regret later. So how do you know where you stand?
Net worth is like figuring out how much money you really have after you take away what you owe. Imagine you have:
- $500 in your bank account (this is what you own).
- But you also borrowed $200 on a credit card (this is what you owe).
To find your net worth, you subtract what you owe from what you own:
$500 - $200 = $300
So, your net worth is $300. It’s a way to measure how much you really have once you pay off any debts.
Net worth is a major indicator of your overall financial well being.
According to a 2023 study, 51% of Americans don't know how to calculate their net worth.
Like stepping on a scale it's simply a snapshot of where you currently stand at any given point in time. Your financial fitness so to speak.
Why is it important
Let’s take a look at two families living under very different financial philosophies, even though on the surface, they look quite similar.
Both families consist of a happy couple and two children. But beneath the surface, their financial choices set them worlds apart.
In the first family, the husband is soaring in his career as a roofer. It’s his first few years making an incredible $300,000 annually—a life-changing amount of money. Excited by this newfound success, he wants his family to enjoy everything they’ve ever dreamed of.
They live in a luxurious, spacious home in a prestigious neighborhood. The driveway sparkles with a brand-new truck for him and a shiny sedan for his wife. Inside, there are expensive toys and gadgets for everyone to enjoy.
The catch? Everything is financed. Every dollar earned is spoken for before it even arrives, tied up in loans, payments, and interest.
Now, meet the second family. The husband has been steadily working for a decade, bringing in a more modest $100,000 annually. While their income isn’t as jaw-dropping, their choices tell a different story.
They live comfortably but modestly, with a used family car purchased outright years ago. Their home is cozy, well-loved, and fully owned. On top of that, they have a nearly paid-off rental property that was once their starter home.
Here’s the difference: the first family walks a financial tightrope. Their lavish lifestyle depends entirely on the husband’s high income, leaving no safety net if the unexpected happens—a job loss, a market downturn, or even a health crisis. A single shake of life’s ladder could send everything tumbling.
The second family, however, has built a sturdy foundation. Their modest lifestyle and smart financial decisions mean they’re prepared for life’s uncertainties. Their future doesn’t hang by a thread but is supported by a structure of thoughtful planning and financial security.
The takeaway isn’t about which lifestyle is “better.” It’s about risk. When you stretch your finances to the limit, you leave no room for error. But when you live within your means, you create a safety net that protects your family and your peace of mind, no matter what life throws your way.
How to measure net worth
Figuring out your net worth won't require any complicated formula. Simply addition and subtraction. Use a planner, such as the performance planner plus, or a simple spreadsheet for the following exercise.
First start by making a list of all your assets. An asset is something valuable that you own and can use to help you in the future either by making you money, saving you money, or be worth more later. Basically, an asset is anything you own that's worth something and can help you reach your goals. The value of your home, bank accounts, retirement and investment accounts, etc. Add them all up to determine the total value.
Next, add up all the debt that you have. List things like your mortgage, credit card balances, vehicle loans, student loans. Now add this all up to figure out the total amount of debt you owe. Finally, subtract the total amount of what you owe from the total amount of what you own to determine your net worth.
Is it positive or negative?
If it's negative then what are the underlying reasons? Having a negative net worth because you just took out a mortgage can be much different than having a negative net worth because of consumer debt.
See your situation for what it is but not worse. The first time can be scary but a necessary step towards the path of progress. You've now got full accountability to yourself and have organized everything in a way that you can track growth.
How to improve it
Improving your net worth is very simple and come down to simply increasing your assets, reducing your debt, or preferably both.
Debt will always be the biggest drag on growing wealth so if you have it then dig deep and focus on getting rid of it like it's going out of style. Put together a debt payment plan to speed the process up by as much as possible. Most people suffer from consumer debt like credit cards and car loans. These are the highest priority because they typically come with the biggest interest rates. Have a plan to eliminate debt completely in the quickest way possible.
You can also free up some cash to save more or pay down debt by tweaking your spending habits. Okay, you might be saying "easier said than done, I'm stretched thin as it is".
The truth is there's always fat to can be trimmed. Budgets may not be your thing and that's okay although that's not what I'm suggesting. Take a close look at your expenses and ask yourself which ones are giving value and which ones can you cut and not feel the least bit disturbed by.
Go for the low hanging fruit first. You know which one's I'm talking about. The stuff you've been meaning to cancel or cut back on but haven't gotten around to yet. The dead weight expenses are the easiest ones to nix and actually feel good about.
This could be unused subscriptions you've been meaning to get rid of anyway or totally forgot about. Maybe there's some other things you've been meaning to change in your life such as eating fast food less often or cutting back on alcohol. The little things will add up and more importantly, create momentum.
Even your supposed fixed ongoing bills can probably be improved. Just because you have to pay them doesn't mean that you have to pay that amount. We're talking about energy bills (does your home really need to be at 60 degrees while you work?), insurance coverages, and any other services you're paying for.
See how you can get these lowered through phone calls or by reducing your actual use based on your needs. It doesn't matter how minor they seem to be. Besides, you can always add them back later if they become a priority again.
When to measure net worth
If your goal is to lose weight, would it make sense to step on the scale just once a year? Think about it—how can you truly track progress or make adjustments if you’re not checking in regularly?
Sure, there’s a slim chance you might see some improvement after a year, but let’s be real. Most people won’t come close to reaching their full potential. Instead, they’ll see only minor progress, no change at all, or worse—find themselves further behind than where they started.
Success isn’t about hoping for the best; it’s about consistently measuring, learning, and adjusting your approach. Don’t leave your goals up to chance. Start checking in on your progress regularly, take control, and make every step count.
Set a schedule to measure what you manage so that you can keep your finger to the pulse of progress. This will help you make sense of your situation and correct course if necessary before red flags become danger zones.
A cadence of recording your net worth once a month will do just fine. Do it on the last day or first day of the month. It doesn't matter which one just pick one and stick with it. Checking quarterly is pushing it and every 6 or 12 months is not recommended at all but better than nothing. With a bit of consistency you may be surprised by your results.
The time to act is now—commit to tracking your journey today!
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