Net Worth
Everything you own minus everything you owe — the single clearest snapshot of financial health.
Net worth is your total assets (cash, investments, retirement accounts, home, vehicles, and more) minus your total liabilities (mortgage, loans, credit card debt). It's the most complete single measure of where you stand financially, and tracking it over time shows whether you're truly building wealth.
Watching the trend matters more than any single reading. A rising net worth means assets are growing faster than debts; a flat or falling one is a signal to examine spending, saving, or debt. Many planners also track liquid or investable net worth — net worth excluding your primary home — because home equity isn't easily spent in retirement.
This definition is general information to help you understand a term, not financial, tax, or legal advice. Figures that change year to year (limits, thresholds, rates) should be confirmed against current official sources. For guidance on your situation, a licensed fee-only fiduciary is the right next step.