GeneralFinancial Glossary
Net Worth
Definition
The total value of all assets (property, investments, cash, vehicles, jewellery) minus all liabilities (home loan, car loan, credit card debt, personal loans). A positive net worth means your assets exceed your debts; negative net worth means you owe more than you own.
Why It Matters
Net worth is the most comprehensive single number measuring your financial health. Track it annually. If your net worth is not growing by at least 15-20% per year in your 30s (combining savings and asset appreciation), your financial plan needs adjustment. Focus on increasing assets and reducing liabilities simultaneously.