Net Worth
Everything you own minus everything you owe. It is the single number that best measures financial health — more honest than income or lifestyle.
By Findley's Finance · Last reviewed: September 2026
Why it matters
Income is what flows through your hands; net worth is what stuck. Someone earning $200,000 with $190,000 in debts is poorer than someone earning $70,000 with $100,000 saved. Tracking it yearly turns vague progress into a scoreboard: assets up and debts down means the plan is working, regardless of what the market did this quarter.
Concrete example
$400,000 home + $100,000 investments + $20,000 cash, minus a $300,000 mortgage and $15,000 in loans = $205,000 net worth.