Net worth
The value of your assets minus all your debts.
Definition
The value of your assets minus all your debts.
Why this concept matters
It gives a clearer view of your overall financial position.
What to watch
Asset values may change and some debts or costs may be overlooked.
Simple example
€200,000 of assets minus €80,000 of debt gives net worth of €120,000.
Explore the guides →