What Is Net Worth?

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When you think about the term "net worth," what do you associate it with? If you're like many of us, the first things that might come to mind are Fortune 500 companies, successful celebrities or billionaire investors. You definitely wouldn't be out of bounds for these ideas — when we think of net worth, our minds quickly make the leap to high net worth. But did you know your net worth is important, even if you don't have millions in the bank? 

Net worth isn't a concept reserved only for the rich and famous. Whether you're looking to build better personal finance habits or begin planning for your financial future, knowing your own net worth can actually come in handy. But what exactly is net worth, and how can you figure yours out? Let's dive into exactly what net worth is — and why it's helpful to know where yours currently stands.