Everything you own minus everything you owe.
Net worth is the single best scoreboard for financial progress because it captures saving, debt payoff, and growth in one number. Track it quarterly; ignore the daily noise.
Formula: Net Worth = Assets − Liabilities
Example: $625,000 assets − $382,000 debts = $243,000 net worth.
FAQ
What is Net Worth in simple terms?
Net worth is the single best scoreboard for financial progress because it captures saving, debt payoff, and growth in one number. Track it quarterly; ignore the daily noise.
How is it calculated?
Net Worth = Assets − Liabilities. Example: $625,000 assets − $382,000 debts = $243,000 net worth.