What Net Worth Means
Net worth is the value of everything you own minus everything you owe. It is a snapshot of your financial position at a specific point in time.
Assets That Count Toward Net Worth
Assets include cash, bank accounts, investment accounts, retirement savings, real estate, vehicles, and personal property with measurable value. Valuable collections, business interests, and intellectual property can also be included when they have a clear market value.
Liabilities and Other Items in the Calculation
Liabilities are debts and obligations that reduce your net worth, such as mortgages, auto loans, student loans, credit card balances, and unpaid taxes. Some calculations also consider intangible assets like brand value or royalties when reliable estimates exist, as explained by Investopedia.
