Net Worth

Net worth is the total value of everything you own (car, investments, money) minus anything you owe (debt), showing your overall financial health in a single number.

It’s like a financial scoreboard. The things you own are the points you've earned, while debts are points you owe. Subtracting owed points from earned points gives your net score. Just like getting a good grade, you want to have a positive scorecard (things you own worth more than the money you owe).