Net Worth

Personal Finance

Net worth is the dollar value of everything you own minus everything you owe. Add up your assets — cash, retirement accounts, brokerage accounts, home equity, vehicles — then subtract your liabilities — mortgage balance, student loans, credit card debt, auto loans. The result is a single number that captures your true financial position. Income tells you what you earn; net worth tells you what you've kept. Tracking it quarterly reveals whether your financial strategy is actually working. A negative net worth is common in your 20s and early 30s due to student debt; the goal is steady growth into your 40s and beyond.