net worth criteria

Net worth refers to the total value of an individual’s or entity’s assets minus their liabilities. In simple terms, it’s what you own (like cash, property, and investments) minus what you owe (like loans and debts). A positive net worth means you have more assets than liabilities, indicating financial stability. Conversely, a negative net worth suggests more liabilities than assets, which can be a sign of financial trouble. Assessing net worth is important for understanding financial health and making informed decisions about budgeting, investing, and planning for the future.