Your Salary is a Vanity Metric
In personal finance, there is only one number that dictates your freedom: your Net Worth. Read why Net Worth matters more than income and use our FIRE Calculator to plan your freedom date. A high salary means nothing if it's entirely consumed by home loan EMIs, car loans, and lifestyle inflation.
The Net Worth Formula
Net Worth = Total Assets − Total Liabilities
A Complete Asset Inventory
| Asset Category | Examples | Liquidity |
|---|---|---|
| Liquid Assets | Mutual Funds, Stocks, FDs, Savings Account | High (T+1 to T+3) |
| Semi-Liquid Assets | EPF (post 58), PPF, NPS, SGBs | Low (locked with conditions) |
| Physical Assets | Real Estate, Physical Gold | Very Low (months to liquidate) |
| Depreciating Assets | Vehicles, Electronics | Negative — exclude from FIRE NW |
Your Liabilities
| Liability Type | Examples | Priority to Pay Off |
|---|---|---|
| High-Interest Unsecured | Credit cards, Personal loans | Immediately |
| Medium-Interest Unsecured | Education loans | ASAP |
| Secured (low-interest) | Home loans at 8.5-9% | After tax benefit; optional |
What is your real net worth right now?
Enter your assets, EPF balance, and liabilities in plannF's Net Worth Tracker — see your total net worth broken down by liquid, locked, and illiquid categories.
See a Live DemoLiquid vs. Total Net Worth: The Critical Distinction
This is the most important concept in FIRE planning. If your total net worth is ₹3 Crores but ₹2.5 Crores is the home you live in, your liquid net worth is only ₹50 Lakhs. You cannot retire on illiquid bricks.
A Realistic Net Worth Example (Age 38, IT Professional)
| Asset | Value | Liquidity |
|---|---|---|
| Nifty 50 Index Fund | ₹45 Lakhs | Liquid |
| PPF Balance | ₹12 Lakhs | Locked (3 yrs to maturity) |
| EPF Balance | ₹35 Lakhs | Locked (till 58) |
| Home (self-occupied) | ₹80 Lakhs | Illiquid |
| Savings Account | ₹3 Lakhs | Liquid |
| Total Assets | ₹1.75 Crores | |
| Home Loan Outstanding | ₹52 Lakhs | |
| Net Worth | ₹1.23 Crores | |
| Liquid Net Worth (FIRE-ready) | ₹48 Lakhs |
This person has a net worth of ₹1.23 Crores — but only ₹48 Lakhs is liquid and available for FIRE planning purposes. The EPF will unlock at 58, PPF at maturity, and the home is non-productive.
Track your liquid net worth toward your FIRE number.
plannF automatically separates your Liquid, Semi-Liquid, and Illiquid assets — showing exactly how much of your wealth is FIRE-ready today.
Start Your Free PlanFAQs
1. Should I include my home in my FIRE net worth calculation?
Include it in your total net worth but exclude it from your FIRE corpus. Your primary residence is typically illiquid, non-income-generating, and you need it to live in. The only exception: if you own a second property that generates rental income or that you plan to sell and downsize — then include the equity (sale price minus outstanding loan) as investable.
2. What is a good net worth by age in India?
A rough India-specific guide for a professional household: by 30 → 1-2× annual salary saved; by 35 → 3-4× annual salary; by 40 → 5-7× annual salary; by 45 → 8-12× annual salary (approaching FIRE territory). These are based on a 30-35% savings rate. If you're behind, the fix is almost always to reduce lifestyle spending, not to take on extra risk.
3. How should I treat my PPF account in net worth calculations?
Include PPF in net worth at current balance, but tag it as "semi-liquid locked." For FIRE planning, track the PPF maturity date and include it as a future-dated asset (like a fixed payout arriving on that date). If you're 38 and have 3 years left in your PPF cycle, the ₹12 Lakh balance will be fully accessible at 41 — plan accordingly.
4. Are vehicles and gold included in net worth?
Vehicles (cars, bikes) should generally be excluded from your FIRE net worth because they are rapidly depreciating and non-income-generating. Physical gold can be included at current market value — it's inflation-preserving and liquid (though with some spread). SGBs (Sovereign Gold Bonds) are both liquid (tradable on exchange) and earn 2.5% annual interest, so include at full market value.
5. How does plannF categorize net worth for FIRE planning?
plannF tracks your net worth in three buckets: (1) Liquid corpus — available from your FIRE date, (2) Time-locked corpus — EPF at 58, PPF at maturity, NPS at 60, (3) Illiquid assets — real estate, physical gold. The FIRE retirement simulation uses only the liquid corpus for withdrawal planning, treating locked assets as bonus milestones that arrive on specific future dates.
