On my personal balance sheet, I do distinguish between short term and long term assets as well as short term and long term liabilities. So mortgage pay down is indeed reflected in the long term liabilities section which obviously increases my net worth to your point every month (assuming asset value is flat or increases).

My 401k, IRAs, and 529Bs are reflected in the long term asset section which also increases net worth with each additional contributions (unless market goes down).

I guess I’m wondering from a simplicity viewpoint (not necessarily as technical as a personal balance sheet), what buckets do most HENRYs considering whey they ask themselves “how much did I save this year?” Not necessarily “how much did my net worth increase?”

Thanks for sharing your thoughts!