Net worth
Net worth, explained in five minutes
October 7, 2026 · 4 min read
Net worth is everything you own minus everything you owe. It's the single number that captures your whole financial picture — cash, investments, property, cards, and loans together.
What counts as an asset
- Cash in checking and savings accounts
- Investment and retirement account balances
- Your home and other property, at a realistic value
- Vehicles, if you want a complete picture (they usually lose value over time)
What counts as a liability
- Credit card balances
- Mortgages and home equity lines
- Car, student, and personal loans
Net worth = total assets − total liabilities. A negative number is common early on, especially with student loans — what matters is the direction it's moving.
Watch the trend, not the day
Markets move and balances bounce around paydays, so any single day can mislead. Looking at net worth month over month shows whether you're actually getting ahead — paying down debt and building savings show up as a line that climbs.
Home equity, honestly
Your home's value minus what you still owe on it is your equity. Use a conservative value you'd be comfortable selling at, and remember that selling costs money too.
PrismWorth brings connected and manual accounts together into one net-worth view with a history chart. Net worth is part of the free plan.
This guide is general information, not financial, investment, tax, or legal advice. Consider your own situation and consult a qualified professional for advice.
See where your own month stands
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