Do you know how much you’re really worth? Your net worth is the sum of the current value of what you own minus what you owe, to give you a net dollar amount that represents your financial situation. So it’s an important metric to track over time because it tells you whether your financial health is improving or deteriorating. Your net worth is a snapshot of your overall financial health, and tracking it can help you see whether habits like saving and paying down debt are having a positive impact on your money.

Calculating net worth begins by adding up all of your current assets, including:

Cash accounts such as savings and checking accounts

Investment accounts such as pension plans and securities accounts