Net Worth

“Net worth” refers to the total value of assets owned by an individual, minus any liabilities or debts they owe. It’s essentially a measure of someone’s financial health and provides a snapshot of their overall financial situation at a specific point in time. Calculating net worth involves tallying up all assets such as cash, investments, real estate, vehicles, and personal belongings, then subtracting all liabilities like loans, mortgages, and credit card balances. Net worth is often used by individuals, businesses, and financial institutions to assess wealth, financial stability, and creditworthiness.