In personal finance, net worth equals a person's total assets minus total liabilities.
Assets include items such as cash, investments, vehicles, real estate, and business interests. Liabilities include mortgages, student loans, credit-card balances, and other debts. The calculation produces a snapshot of financial position at a particular time.
Net worth differs from income. Income measures money received over a period, while net worth measures accumulated wealth after debts are deducted. A person can have a high income but low net worth if spending and borrowing are substantial.
Tracking net worth periodically can show whether savings, investments, debt repayment, and asset values are improving a household's overall financial position.