Net Worth
Net worth is everything you own minus everything you owe — the single number that best answers 'how am I doing financially?' It's more honest than income or any single account balance, because a big salary with bigger debts is still broke. Track it yearly and watch the trend, not the number.
Example: $600,000 in assets (home, savings, investments) minus $400,000 in debts equals a $200,000 net worth.
Related
Educational content only — not financial advice.