The composition is the story
A household with a $300k net worth made up of $250k home equity and $50k in liquid investments is illiquid. A household with $200k net worth made up of $180k liquid and $20k home equity is the opposite. They behave very differently in a job loss or an emergency. The "Liquid" line in the headline panel is the one that determines how much optionality you have.
FAQ
Should I count my home as an asset or a liability?
Both, in different ways. The home's market value goes on the asset side. The mortgage balance goes on the liability side. Net home equity is the difference. Some financial planners exclude the home entirely from net worth ("human needs" wealth) and only count investment assets; that gives a more conservative number for retirement planning.
Why does "debt-to-asset" matter more than "debt-to-income"?
DTI looks at cash flow. D/A looks at solvency. A household with high DTI but low D/A is leveraged but not insolvent. A household with low DTI but high D/A (e.g. lots of credit card debt relative to assets) is technically solvent but operationally fragile. Both views are useful.
How often should I update net worth?
Quarterly is the standard answer. Monthly is fine but the noise from short-term market moves can be discouraging. Annual is too infrequent — you lose the feedback loop. The day you update isn't sacred; pick a date and stick to it.
Methodology
Net worth = Σ assets − Σ liabilities. Debt-to-asset = total liabilities / total assets. Liquid = cash + brokerage. Projection: invested assets (brokerage + retirement) grow at the stated return; annual savings are added at year-end. Home equity and mortgage balance are held flat in the projection for simplicity — extend by subtracting principal paydown or adding home appreciation if you want a more granular model. Source: standard personal-finance textbook framework (e.g. Ramsey, Chatzky, or any CFP curriculum).