My cashflow spreadsheet is set up to calculate three types of net worth for me:
(1) Total net worth = assets minus liabilities -- the standard balance sheet taught in accounting class. The estimated fair market value of my house is included, as is the payoff balance of all debts, including the mortgage. Any asset can be sold for a salvage value and converted into cash if desired (the price one can get when selling an asset may or may not be to one's liking, but the sale can still be made nevertheless).
(2) Financial net worth = financial assets minus liabilities -- only taxable and retirement financial assets are included. If I need to raise some cash quickly, I can sell a few shares of stock; I can't sell the front porch and a couple of doors and windows of my house to raise the money. I include all liabilities, including the mortgage, because I could pay off my mortgage by selling financial assets to do so (actually, I paid off my mortgage a while ago, but my spreadsheet still has this calculation structure built into it).
(3) Non-retirement financial net worth = taxable financial assets minus liabilities -- only taxable financial assets are considered because I'm not planning on drawing on my retirement money until I'm 70 1/2 years old (to give it more time to compound). Only taxable financial assets (plus any earned income I make) are available to me under normal circumstances right now to pay living expenses. Liabilities still include the mortgage payoff balance because one can sell off taxable financial assets at any time to pay off the mortgage if desired.
Someday, I may sell my present house and roll over the proceeds into another house in an area that is much less expensive to live. I can also will my house to my heirs or favorite charity. Other types of assets some people have are annuities, whole life insurance, baseball card collections, family heirlooms, and whatever that can always be converted into cash should the decision be made to sell them.
For FIRE cashflow planning, I use my financial net worth because a 4% SWR works. The assets are liquid and can be sold off periodically to raise the money needed to pay living expenses. I consider all income-producing assets to be financial assets (but I only own stocks and do not own any investment real estate or businesses directly).
Between now and age 70 1/2, however, I use only my non-retirement financial net worth because I don't want to tap into my retirement assets right now. I only want to use my taxable financial assets so that my retirement financial assets have a longer time to compound under tax-advantaged circumstances. Once I become 70 1/2 years old, retirement assets become part of my "taxable assets" to the extent I have to take the required minimum distribution each year.
My Roth IRA lurks in the background as "longevity insurance" in case I need additional money when I reach my 80s. I don't factor my Roth IRA in any cashflow planning at the present time, but it's there in case I need it eventually. Otherwise, my beneficiaries will get whatever balance is there when I move on to the afterlife.