Net worth is a financial metric that represents a person's assets minus liabilities. It is a snapshot of a person's financial health and gives an idea of their wealth. Assets include items such as cash, savings, investments, and property, while liabilities include debt such as mortgages, credit card balances, and loans. The net worth calculation gives an overall picture of a person's financial position and helps to determine if they are in a positive or negative financial situation. A positive net worth indicates that a person's assets are worth more than their liabilities, while a negative net worth indicates that liabilities are greater than assets. Monitoring net worth can help individuals make informed financial decisions and work towards their financial goals.

Net worth is the total value of an individual’s or a company’s assets minus their liabilities. It’s a measure of financial health that provides a snapshot of what a person or entity owns compared to what they owe. Assets include things like cash, investments, property, and valuable personal items, while liabilities cover debts such as mortgages, loans, and credit card balances.

To calculate net worth, simply subtract the total liabilities from the total assets. If the result is positive, it indicates a surplus of assets over debts, while a negative net worth means liabilities exceed assets. Monitoring net worth over time helps individuals or businesses assess financial progress and make informed decisions about savings, spending, and investment strategies.