Finance glossary
Net Worth
Definition
Total assets minus total liabilities for a person or household.
Net worth is what you own minus what you owe, the single clearest measure of financial health. It rises as you pay down debt and build savings and investments. Tracking it over time shows progress better than income alone, which says nothing about what you keep.
In a sentence
Subtracting his debts from his assets, his net worth finally turned positive.
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