Net worth is:
current value of assets minus outstanding liabilities
Assets can include cash, deposits, investments, retirement-account balances, gold and property. Liabilities can include outstanding loans, credit-card balances and other amounts owed.
Use supportable current values and avoid double counting. For a jointly owned asset, include only the share represented in the household view. For a loan, use the outstanding balance rather than the original amount.
Net worth is a point-in-time snapshot. Comparing your own consistently prepared snapshots can show how assets and liabilities changed. It does not require an age-based target, salary multiple or universal annual growth benchmark.
Liquidity, tax, concentration, insurance and cash flow are separate from the net-worth total. A high net worth can still be illiquid, and a change in market value can move the figure without a cash transaction.
Use the Net Worth Calculator for the arithmetic and retain the assumptions used for each snapshot.