There are multiple numbers to check the health of your finances, such as your checking account, retirement fund, student loan, or income. But if there is one number that highlights how successful you are, it has got to be your net worth.
It refers to the difference between the value of what you own minus liabilities like your mortgage or credit card debt. This number is important to track because it determines your future wealth.
Calculating it is simple: just add your assets and subtract your liabilities to this number. What is left is your net worth. In case you are keen on adding to this amount, just follow the tips below and increase your net worth beginning today.