Net Worth
The difference between everything you own and everything you owe — your financial 'wealth'.
Net worth = Total assets − Total liabilities
Assets are everything you own with value: bank accounts, investments, property, pensions, vehicles.
Liabilities are everything you owe: mortgage, loans, credit card balances, other obligations.
Why measure it?
Net worth is a snapshot of your financial health at any moment. Even if net worth is negative (e.g. with student debt), growing it over time shows financial progress.
Goal: net worth increases every year, even if slowly.