Glossary

Net Worth

DEFINITION

Net worth is the amount left after subtracting total liabilities from total assets. It is found by adding up everything you own, such as your home and bank savings, and then deducting everything you owe, such as mortgages, loans, and credit card balances.

ELI5

Net worth shows what you really have after taking all your debts away from everything you own.

Other related terms

Treasury Bill

Learn more

Fixed Income Fund

Learn more

Secured Loan

Learn more

Compounding Interest

Learn more