Theoretically, your net worth is the value in cash you would have if you were to sell everything you own, and paid off all your debts. From an accounting point of view, your net worth is essentially the grand total of all your assets, minus your liabilities.
Being more practical, your net worth is the number you get when you add up everything you own from the cash on your bank account to the value of your home, and then subtract from that figure of your debts which may include a mortgage, car loans, credit card balance or even taxes due. Continue reading “Hi! How is your net worth doing today?”