The total value of your assets minus your liabilities, representing your overall financial position.
Net worth is the value of all the non-financial and financial assets owned by an individual or institution minus the value of all its outstanding liabilities. It is a snapshot of your financial health at a specific point in time. Assets include cash, investments, real estate, vehicles, and personal property. Liabilities include mortgages, loans, credit card debt, and other obligations. A positive net worth indicates financial health, while a negative net worth suggests that liabilities exceed assets.
If you have $250,000 in assets (home equity, retirement accounts, savings) and $100,000 in liabilities (mortgage, student loans), your net worth is $150,000.