Net Worth
Net worth is everything you own (assets) minus everything you owe (liabilities). It is the single best snapshot of your overall financial health, and tracking it over time shows whether you are actually building wealth. A negative net worth is common early on and improves as debt shrinks and savings grow.
Example
With $50,000 in savings, a $300,000 home, a $220,000 mortgage, and $10,000 in other debt, your net worth is $120,000.