I earn well, but my net worth is negative. How do I turn things around?

You have a good salary, pay your bills on time and manage your expenses.

So seeing a negative net worth can feel confusing.

Negative net worth simply means that your total liabilities are greater than your total assets.

It doesn't automatically mean you're financially irresponsible. But it is worth understanding what's causing it.

Why can net worth be negative despite a good salary?

A few common reasons include:

• Large outstanding home or personal loans.
• High-interest credit card debt.
• Limited savings or investments.
• Assets that have declined in value.
• Spending that leaves little room for building wealth.

Your salary measures your income. Net worth measures what you've accumulated after accounting for debt.

Where should you start?

1. List everything you own and owe

Calculate your assets and liabilities to understand your current position.

2. Identify expensive debt

Review outstanding balances, interest rates and repayment obligations.

High-interest debt can make it difficult to build wealth.

3. Build a financial cushion

Maintain emergency savings appropriate to your circumstances, even while working towards debt repayment.

4. Track your progress

Review whether your loan balances are reducing and whether your assets are gradually growing.

Avoid relying on new high-cost borrowing to cover everyday expenses.

The takeaway: A negative net worth is a financial position, not a permanent label. Understanding your debt, managing your cash flow and consistently building assets can help you move in the right direction.