Your net worth summary, or personal balance sheet, is the list of everything you own and owe. Your personal financial net worth equals your assets minus your liabilities.
Assets can include cash accounts like checking and savings, investment accounts like a 401(k), and personal property like an owned car or home.
Liabilities can include personal debt like credit card debt, personal loans, student loans, auto loans, and mortgages.
Since net worth is a specific number able to be tracked with precision, it enables you to measure your financial progress from one month or year to the next.