I am always amazed that so few people could give a reasonable definition of Net Worth. It is one of the most important things to know in all of finance. As an adult this is your report card. You must know what your net worth is. You must also track it over time to see if it is increasing or decreasing and by how much. The definition is the result of a simple formula. Net Worth = Total Assets - Total Liabilities. Here an asset is any store of value. The total would be the sum of all bank accounts, investment/retirement accounts, property values etc. plus an estimate of the current value of your other possessions such as cars, vacation homes, etc. From this total asset amount you need to subract any debt values (total liabilities). These include your home mortgage, commercial real estate debt, student loans, credit card balances, etc. You should arrive at a positive number (unless you are financially underwater!). This is your best estimate of your current net worth. Track it over time on perhaps a quarterly basis. This will help you with many things including applying for loans or estimating life insurance needs, etc.