Financial security isn’t just about earning money—it’s about understanding where you stand and making informed decisions for the future. Whether you’re planning for retirement, adjusting to an empty nest, or simply aiming to build long-term wealth, there are three essential numbers every woman should know: Total Income, Total Expenses, and Net Worth.

These numbers provide a clear picture of your financial health and empower you to make strategic decisions that align with your goals. By tracking them regularly, you can confidently plan for major life transitions, reduce financial stress, and ensure long-term stability.

In this guide, we’ll break down why each of these numbers matters, how to calculate them, and how they can help you take control of your financial future. Let’s dive in!

1. Total Income

Why It’s Important:

  • Your income is the foundation of your financial well-being. It determines how much you can save, invest, and spend.

  • Understanding all income sources ensures you’re maximizing your financial potential.

How to Calculate:

  • Add up all sources of income, including:

    • Salary/Wages (after taxes)

    • Bonuses & commissions

    • Investment income (dividends, rental income)

    • Side hustles or business earnings

    • Pensions or Social Security (if applicable)

Formula:
Total Monthly Income = (Salary + Side Income + Investments + Other Income Sources)

2. Total Expenses

Why It’s Important:

  • Knowing where your money goes is crucial to managing your budget and avoiding financial stress.

  • Helps identify areas where you can cut back and allocate more toward savings or investing.

How to Calculate:

  • Track all monthly expenses, including:

    • Fixed expenses (rent/mortgage, insurance, loan payments)

    • Variable expenses (groceries, utilities, entertainment)

    • Discretionary expenses (travel, dining out, hobbies)

Formula:
Total Monthly Expenses = Fixed Expenses + Variable Expenses + Discretionary Expenses

3. Net Worth

Why It’s Important:

  • Net worth is your ultimate financial snapshot—it tells you if you’re building wealth or falling behind.

  • A positive and growing net worth signifies financial stability and preparedness for future goals.

How to Calculate:

  • List all assets:

    • Cash (savings, checking)

    • Investments (stocks, bonds, retirement accounts)

    • Real estate

    • Business assets

  • List all liabilities:

    • Mortgage, car loans, credit card debt, student loans

Formula:
Net Worth = Total Assets – Total Liabilities

Tracking these three numbers regularly helps women take control of their financial future, make informed decisions, and plan confidently for their next stage in life, retirement, and beyond. Click on this link to check out our Cash Flow Analysis worksheet.

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