What Net Worth Means
Net worth is the difference between what you own and what you owe. It is a single number that summarizes your financial position at a specific date.
How Karen Calculates Her Net Worth
Karen lists her assets, such as bank accounts, investments, and property, then subtracts her liabilities, like loans and credit card balances. The result is her current net worth.
Why Calculating Net Worth Matters
Tracking net worth helps you see whether your finances are improving over time. It can guide decisions about saving, investing, and debt repayment. For more on the basics, visit Investopedia.
