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.
Example currency : United Kingdom (GBP). The reference country controls the example currency.
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