Net Worth Is the Ending Mathematical Result of Assets Minus Liabilities
Net worth is the ending mathematical result of subtracting total liabilities from total assets. It shows what remains after all debts are settled against everything owned.
What Counts as Assets and Liabilities
Assets include cash, investments, real estate, and personal property valued at market price. Liabilities include loans, credit card balances, mortgages, and other outstanding obligations.
Why Net Worth Matters for Financial Health
A rising net worth indicates wealth accumulation, while a falling figure may signal debt growth or asset depreciation. It is a simple metric used by advisors and institutions to summarize overall financial position.
