The definition of net worth is simply the combination of your total assets minus any debts you owe. This figure will be your total net worth value, which could either be positive or negative depending on whether or not you have a lot of debt (say, from student loans) or a good amount of assets (like, savings or investment accounts).
If you don't know your current net worth, do a simple calculation today. Then keep updating this figure (using a spreadsheet or other net worth tracker) every quarter so you stay up-to-date on your overall financial situation.
This article first appeared on Wise Bread.
