Net Worth
Everything you own minus everything you owe.
Net worth is the single-number snapshot of financial position: total assets (cash, investments, property, retirement accounts) minus total liabilities (mortgage, loans, credit card balances). It can be negative — common early in a mortgage or right after taking on student debt — and is a running total, not an income measure.
Worked Example
Someone with $180,000 in home equity, $40,000 in retirement savings, $10,000 in cash, and $25,000 in remaining student debt has a net worth of $205,000 ($230,000 in assets minus $25,000 in debt).
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