What Is Net Worth?

Net worth is the total value of your assets minus the total of your liabilities.

Net Worth Overview

Net worth is a snapshot of your financial position. Assets include things like cash, investments, property, and valuable possessions. Liabilities include debts such as mortgages, credit card balances, and student loans. If your assets exceed your liabilities, you have a positive net worth. If the opposite is true, it’s negative. Tracking net worth over time helps you understand whether your financial situation is improving and informs decisions like budgeting, investing, or debt repayment.

Key Points

• Net worth is what you own minus what you owe.
• It measures your overall financial health.
• Can be positive or negative.