Gross, net and available wealth: the differences
The same wealth can be expressed as three very different figures. Confusing them leads you to believe you are richer, or less liquid, than you really are. Here is what each one measures.
Gross wealth
This is the sum of everything you own, at its current value: property, financial holdings, savings, cash, valuables.
It is the most flattering figure, and the least informative: it completely ignores what you owe. Someone holding a property worth 300,000 financed with a 250,000 mortgage shows gross wealth of 300,000, which says nothing about their real situation.
Net worth
This is gross wealth minus all debts: mortgages, consumer credit, other loans.
In the previous example, net worth comes to 50,000. This is the figure that reflects what you genuinely own, and the one that grows as you repay, even without new contributions: each monthly payment reduces the debt and raises the net share by the same amount.
Available wealth
This is the portion of net worth you could mobilise quickly without upending your situation.
It excludes what is hard to sell, what cannot be sold in part, and what would carry major consequences if sold, starting with your main home. A comfortable net worth can sit alongside very low available wealth: that is common and perfectly workable, provided you are aware of it.
Why the distinction changes what you read
The three figures answer three different questions: what I hold, what I truly own, and what I can count on in the short term.
In Finvygo, debts are deducted so the figure shown is net worth, not a gross total. That is also why adding a loan lowers the displayed figure: the view becomes more accurate, not worse.
Gross wealth measures what you hold, net worth what you own, and available wealth what you can mobilise. Tracking all three avoids the two symmetrical errors: thinking you are richer than you are, or more constrained than you are.
Ready to take control of your wealth?
Join Finvygo for free and start tracking all your assets in one place.
Create my free account