What is net worth?
Net worth is simply everything you own (your assets) minus everything you owe (your liabilities). It is the clearest single snapshot of your financial health. A positive and rising net worth means you are building wealth; a negative figure — common early in life with student loans or a new mortgage — is a starting point to grow from.
Assets and liabilities
Assets include cash and savings, investment and retirement accounts, the market value of your home and vehicles, and anything else of value. Liabilities include your mortgage, car and student loans, credit-card balances and any other debts. Enter current values for the most accurate picture.
Tracking this number once or twice a year is one of the most motivating habits in personal finance — it captures the combined effect of saving, investing and paying down debt in one place.
Frequently asked questions
Should I include my home in net worth?
Yes — include your home's current market value as an asset and the remaining mortgage as a liability. The difference is your home equity, which is a real part of your wealth even though it is not easily spendable.
Is a negative net worth bad?
Not necessarily. Many people have negative net worth early on due to student loans or a recent home purchase. What matters most is the trend: consistent saving, investing and debt repayment move the number in the right direction over time.