Net worth is the sum of all non-financial and financial assets owned by an individual or institution in addition to the value of all its outstanding liabilities. As financial assets and outstanding liabilities equals net financial assets, net worth can also be conveniently expressed as non-financial assets plus net financial assets. It can be used to describe people, corporations, governments, economic sectors, such as the sector or financial companies, or entire nations. For individuals, net worth refers to their economic situation as the total of all assets and liabilities. Examples of assets that individuals would consider in their net worth are retirement accounts, investments, home(s), and vehicles. The secured and unsecured debts (such a home mortgage) and non-secured debt (such personal loans or consumer credit) are considered liabilities. Intangible assets, such as degrees from universities, are usually not part of net worth even though they can positively impact your overall financial situation.
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