What Is Net Worth?
Net worth is the value of everything you own minus everything you owe. It is a standard measure of personal financial health used in accounting and finance.
How to Calculate Net Worth
Add the value of your assets, such as cash, investments, and property, then subtract your liabilities, like loans and credit card balances. The result is your net worth.
Why Net Worth Matters
Tracking net worth helps you understand your financial progress over time. A rising net worth usually means you are building wealth, while a falling number can signal financial stress.
For more details on calculating and improving your net worth, see Investopedia Net Worth Definition.
