Net worth

Also called: wealth, assets, liabilities

Everything you own minus everything you owe.

Formula

Net worth = Assets − Debts

Worked example

1. Investments £8,000 + savings £3,000 = £11,000 assets
2. Credit card £500 owed
3. £11,000 − £500 = £10,500

Result: £10,500

How to read it

The best single number for your overall progress. Track the trend: saving and paying down debt push it up even when markets are flat.

See it with real numbers: Net worth → (free account)