Net worth refers to the value of all non-financial as well as financial assets of an individual or institution less the total value of its outstanding obligations. [1] Since financial assets minus outstanding liabilities equal net financial assets, net worth may also be easily expressed as non-financial assets plus net financial assets. This can be applied to people, corporations, governments, economic sectors, like the sector, financial companies, or to entire countries. For individuals, net worth refers to their economic position, which is the total of all assets and liabilities. Examples of assets individuals would consider in their net worth include retirement accounts, investment options, home(s), and vehicles. Both secured debt (such a mortgage for your home) as well as unsecured debt (such a personal loan or consumer debt) are considered liabilities. Intangible assets, such as degrees from universities, are typically not considered part of net worth even though they can positively impact one's overall financial situation.
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