What is Net Worth?

Updated October 22, 2026

Net worth is everything you own minus everything you owe.

Add up assets like savings and investments, then subtract debts.

It's a better measure of progress than income alone.

Tracking it a few times a year keeps you motivated.

Example

You have $8,000 in assets and $3,000 in debt, so your net worth is $5,000.

Can net worth be negative?

Yes, if debts are bigger than assets. That's common early on.

Does my car count?

Yes, at its current value, not what you paid.

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Work out your own number with the quit your job calculator, or take the passive income quiz.