What Net Worth Means
Net worth is the difference between your total assets and total liabilities. It measures your financial position at a specific point in time. A positive number means assets exceed debts; a negative number means the opposite.
Steps to Calculate Net Worth
List all assets, including cash, investments, retirement accounts, real estate, and personal property. Then list all liabilities, such as mortgages, loans, and credit card balances. Subtract total liabilities from total assets to get your net worth.
How to Grow Net Worth Over Time
Increase assets by saving consistently, investing in diversified portfolios, and reducing high-interest debt. Track your progress regularly and adjust spending to free up more money for wealth building. For a deeper breakdown, see the Investopedia guide on net worth.
