Add your assets and liabilities to see your true financial picture: your net worth, debt ratio, and where you stand.
Net worth is the total value of everything you own (assets) minus everything you owe (liabilities). It's one of the most important single numbers in personal finance: a snapshot of your overall financial health.
Assets include property, savings, investments, pension funds, vehicles, and valuables. Liabilities include mortgages, loans, credit card balances, student loans, and any other money you owe.
A positive net worth means your assets exceed your debts. A negative net worth is common early in life, especially with student loans or a large mortgage, and doesn't mean you're in financial trouble. The goal is to track it over time and move in the right direction.
Your net worth at any single point in time is less important than the direction it's moving. Tracking it regularly — even just once or twice a year — reveals whether your financial decisions are actually working. Are your savings growing faster than your debts? Is your pension gaining ground? Is your property equity increasing? These trends are invisible without a periodic snapshot.
Assets are things you own that have value: property, savings accounts, ISAs, pension funds, investments, vehicles, and other valuables. Liabilities are amounts you owe: a mortgage, personal loans, car finance, credit card balances, and student loans. Net worth is simply assets minus liabilities. A large mortgage doesn't automatically mean a low net worth — what matters is the equity (the portion of the asset you actually own outright).