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The value of all your assets minus all your liabilities.
Net worth is the most accurate single metric to determine a person's true financial health. It is calculated simply by taking the value of everything you own (your assets) and subtracting everything you owe (your liabilities/debts). A high income does not necessarily mean a high net worth if that person spends all their money or is drowning in debt.
Net Worth = Total Assets - Total LiabilitiesIf you own a $400,000 house, have $50,000 in investments, and $10,000 in a checking account, your Total Assets are $460,000. If you owe $300,000 on your mortgage and $20,000 on a student loan, your Total Liabilities are $320,000. Your Net Worth is $140,000.