Net worth is the total value of everything you own (assets) minus everything you owe (liabilities). It is the single most useful measure of financial health.
Assets: bank accounts, savings, investments, pension (current value), property (current estimate), vehicles. Liabilities: mortgage outstanding, personal loans, credit card balances, student loan, car finance. Net worth = total assets − total liabilities.
Two people on the same salary can have very different net worths. Net worth reflects saving behaviour, debt management and investment — the things that build long-term financial security. Income is what comes in. Net worth is what you keep.
A negative net worth (common in young adults with student loans or mortgages) is not a crisis — it is a starting point. The goal is a positive trend. Tracking quarterly with our free net worth tracker makes the progress visible.