Definition
Net Worth
Everything you own minus everything you owe.
This term appears in The Budget Ledger's practical finance glossary.
Net worth is the single number that shows your true financial position: add up your assets (cash, savings, investments, home, car) and subtract your liabilities (mortgage, loans, credit card balances). What remains is your net worth.
Unlike income, net worth cannot be faked by spending. It can be negative early on because of student loans or a new mortgage; what matters is the direction it is heading over time.