Yournetworthrepresents how much wealth you have, measured by assets like a house, cars, 401 (k), jewelry or cash in the bank, minus the debt obligations you have, or what you owe. When you ... Networthis a simple measure of a person’s overall financial picture. Knowing how to calculate it and what it means can help with reaching financial goals and planning for retirement. Aug 25, 2025 ·Networthis a measure of what you own minus what you owe. It’s one of the more comprehensive measures of wealth, and you should have a goal of increasing yournetworthover time. Net worthis the excess of assets over liabilities. The assets that contribute tonet worthcan include homes, vehicles, various types of bank accounts, money market accounts, stocks and bonds. [3] The liabilities are financial obligations such as loans, mortgages, and accounts payable (AP) that deplete resources.
