Net worth can be a confusing concept to wrap your head around, but it's actually much simpler than you might think. So what is it and how do you calculate it? Well …
Your net worth is a tangible representation of all of your finances in number form. It shows you where you stand in comparison to others. Essentially, it takes your assets and liabilities into account — weighing the positive and negative elements of your financial profile — and gives you a number, either positive or negative.
If it’s the latter, don’t worry. It's possible to jump-start your money situation and get yourself back in the black. Look at your net worth as a snapshot of your finances —one you should aim to check every six months. It’s a way of tracking your financial progress.