Net worth

General

The total value of everything you own minus everything you owe. It can be negative, and that is normal early in life. Tracking net worth over time is one of the clearest measures of financial progress.

Related terms

Asset

Anything you own that has financial value. Assets include cash in the bank, a vehicle, investments, or property. Your total assets minus your total debts equals your net worth.
Liability

Any financial obligation or debt you owe. Liabilities include mortgages, student loans, credit card balances, and money borrowed from family. Your net worth is your assets minus your liabilities.