What is net worth?

Net worth is the value of all your assets minus your liabilities. It represents your overall financial health.

How do I calculate my net worth?

To calculate your net worth, add up all your assets (cash, investments, real estate, etc.) and subtract your liabilities (loans, mortgages, debts).

Why is knowing my net worth important?

Knowing your net worth helps you understand your financial standing, make better investment decisions, and plan for the future.

What are considered assets in net worth calculation?

Assets include cash, savings, investments, real estate, vehicles, and valuable possessions that hold monetary value.

What are liabilities in net worth calculation?

Liabilities are financial obligations such as loans, credit card debts, mortgages, and other outstanding payments.

Can my net worth be negative?

Yes, if your liabilities exceed your assets, your net worth will be negative. This means you owe more than you own.