Net worth
Everything you own minus everything you owe — one number for your whole financial position.
Add up what you own — cash, savings, investments, property, anything with real resale value. Subtract what you owe — mortgage, loans, cards, overdrafts. The result is your net worth.
A negative figure is common, particularly early on or with a large mortgage, and it is not a verdict.
Its usefulness is as a trend, not a score. Checked once, it tells you little; checked yearly, it tells you whether the direction is right, which is nearly the whole question.
It is also the number that stops good news and bad news being confused. A larger house with a larger mortgage may not change it at all.
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