Net Worth
GeneralGlossary term
Definition
The total value of your assets minus your liabilities. A key measure of financial health that should ideally increase over time as you build wealth.
Related terms
- AssetAnything of value that an individual or company owns, such as cash, investments, real estate, or personal property. Assets are the foundation of building wealth.
- LiabilityA financial obligation or debt owed to another party. Liabilities include mortgages, auto loans, credit card debt, and student loans.
- EquityThe value of ownership in an asset after debts are subtracted. In real estate, it's the property value minus what you owe. In stocks, it represents ownership shares in a company.
Get advice that uses your real numbers
Warren reads your accounts and explains what terms like this mean for your plan. Free to start, no credit card required.