Understanding Your Net Worth
Net worth = Total Assets − Total Liabilities. It is the most comprehensive single measure of your financial health. Tracking it annually reveals whether you are building or depleting wealth over time.
Key Asset Categories
- Property: Primary residence and investment properties at current market value, not purchase price.
- Liquid assets: Cash, savings accounts, and investments you can access quickly.
- Pension: Your CNAP entitlement and any private pension schemes.
Luxembourg-Specific Considerations
Property values have risen dramatically in Luxembourg over the past decade. Your home may represent a much larger share of net worth than in other countries. The CNAP pension entitlement, while not a liquid asset, provides significant financial security in retirement.