Net Worth

Everything you own minus everything you owe.

Net worth is the total value of your assets (cash, investments, property) minus your liabilities (debts). It is the single clearest snapshot of your overall financial position and a useful number to track over time.

Examples

$250,000 in assets minus $50,000 in debt equals a net worth of $200,000.

Related terms

Savings Rate Financial Independence

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Financial Literacy

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Essential Financial Terms Every Beginner Should Know

A quick, beginner-friendly tour of the financial vocabulary that shows up again and again in FIRE and retirement planning.

Retire Early Guide Team20 May 20262 min

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