Net worth is the value of the assets you own minus any liabilities you have. It is an important measurement used to gauge your current financial health. Assets can include homes, investments, jewelry, vehicles, cash value of life insurance, and other things of value. Liabilities can include mortgages, student loans, car loans, credit cards, lines of credit and other debts. Net worth is a good reference point for measuring future financial progress. If your net worth grows it means your financial situation is getting better over time. If your net worth decreases or becomes negative, it means your financial situation is getting worse.
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