Net worth

Net worth is the total value of everything you own minus what you owe. It’s a snapshot of your financial position at a specific point in time. To calculate it, add up the worth of your assets—such as cash, savings, property, investments—and subtract any debts or liabilities, like loans or credit card balances. A positive net worth means you own more than you owe, indicating financial health; a negative net worth suggests debt exceeds assets. Knowing your net worth helps you understand your financial standing and plan for future goals.