Freedom Net Worth (Four-Quadrant Liquidity Matrix) calculator

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Freedom Net Worth (Four-Quadrant Liquidity Matrix)

"What is my net worth if I stop lying to myself about my house and my car?"

Standard balance sheets hide liquidity risk. You might have a net worth of $1M, but if $900k is in your house, you have zero liquidity. Freedom Net Worth is simply Q1 − Q3.
— Debugging Your Personal Finance, Chapter 5

Quadrant 1 — Liquid assets (Freedom Fund)

Cash + taxable brokerage + index funds ($)

Quadrant 2 — Illiquid / age-locked (Ghost Wealth)

401(k) / RRSP / IRA ($) Car trade-in value ($)

Home market value ($) Mortgage balance ($)

Quadrant 3 — Toxic debt

Credit card balances ($) Other unsecured debt ($)

Q1 Freedom Fund (liquid)—

Q2 Ghost Wealth (illiquid)—

Q3 Toxic Debt—

Q4 Strategic Leverage—

Standard net worth: —

Liquidation net worth (8% home haircut per Ch. 10): —

Freedom Net Worth (Q1 − Q3): —

Liquidation haircut on real estate is illustrative; actual transaction costs vary. This calculator does not advise on which quadrant your future contributions should flow into.

From Chapters 5 and 10 of Debugging Your Personal Finance. Simple calculator · Inputs stay in your browser · Not financial advice.

A simplified calculator for education, not financial advice. See the disclaimer.

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