What is Net Worth?
What is Net Worth?
Your net worth is the total value of everything you own (like money in the bank, property, or investments) minus what you owe in debts (like loans or credit card debt). It's like a snapshot of your financial health. If your assets are more than your debts, you have a positive net worth. It's a useful number to know because it can help you understand if you're moving in the right direction financially, like saving more money or paying off debts.
3 things to know about Net Worth
- Generally, knowing your net worth is important because it gives you a clear picture of where you stand financially. It's like a financial scorecard that can help motivate you to reduce debt and increase savings.
- Usually, your net worth can change over time. As you pay off debts and save more money, your net worth grows. This can be a sign of improving financial health and stability.
- Surprisingly, even small changes can make a big difference in your net worth over time. For example, investing a little bit of money regularly, paying down debts, or even upgrading your skills for a better-paying job can boost your net worth.
Disclaimer: Yendo is not a provider of financial advice. The material presented on this page constitutes general consumer information and should not be regarded as legal, financial, or regulatory guidance. While this content may contain references to third-party resources or materials, Yendo does not guarantee the accuracy or endorse these external sources.