Your net worth is the total value of everything you own (your assets) minus everything you owe (your liabilities). It’s a snapshot of your financial health and a powerful tool for tracking your progress over time.

To calculate your net worth:

1. Add up your assets – like cash, investments, retirement accounts, property, and valuable belongings.
2. Add up your liabilities – such as credit card balances, student loans, mortgages, and other debts.
3. Subtract your total liabilities from your total assets.

Net Worth = Assets − Liabilities

A positive net worth means you own more than you owe. A negative net worth means your debts outweigh your assets. Either way, knowing your number helps you take control of your financial future.