What Is Net Worth
Net worth is the difference between what a person owns and what they owe. It is a single number that summarizes overall financial position.
How to Calculate Somebodys Net Worth
List all assets such as cash, investments, real estate, and retirement accounts. Then list all liabilities like mortgages, loans, and credit card debt. Subtract total liabilities from total assets to get net worth.
Why Net Worth Matters
Tracking net worth helps measure wealth over time and compare financial progress. For a detailed step by step guide, see this overview from Investopedia.
