Net worth

Net worth is the simplest scorecard for personal wealth. Add up your assets, subtract your liabilities, and the remainder is your net worth.

Assets include cash, investments, property, pensions, and anything else you could sell for a meaningful amount. Liabilities include mortgages, credit cards, student loans, car finance, and any other debt.

The number changes every day as markets move, debts shrink, and savings grow. Tracking it monthly is usually enough. The goal is not a specific figure; it is a clear, honest picture of where you stand.