What Is Net Worth
Net worth is the value of everything you own minus everything you owe. It is a basic measure of personal financial health used by advisors, lenders, and researchers.
Common Net Worth Myths
Many people believe net worth must be huge to matter, but even a small positive number shows you have more assets than debt. Another myth is that only investments count; in reality, savings, home equity, and retirement accounts all contribute.
How to Calculate and Improve Net Worth
To calculate net worth, list all assets such as cash, investments, and property, then subtract all liabilities like loans and credit card balances. You can track your progress over time using simple spreadsheets or reputable online tools. For more guidance on building wealth, visit Investopedia.
