Net worth is the total value of all the assets you own minus any liabilities you owe.
This is a useful metric that can help you understand how much money you have available to spend, and how much debt you carry. Low or negative net worth can be a red flag for creditors.
In simple terms, you can estimate your NetWorth by subtracting the value of all your assets (bank accounts and investments) from the value of all your debts (all those credit cards, mortgages, and other debts that are spread around in different accounts).

This is a good way to check whether you’re doing better than your friends and family members.
It is important to know what kind of assets you have and what types of liabilities you’re carrying. You should also know how much your assets are growing and what your liabilities are growing.
The main components of your net worth :
Assets: This includes everything from current cash deposits to investments and retirement accounts. Your liquid assets should cover about six months’ worth of expenses.
Liabilities: This includes everything from credit card debt to vehicle loans to student loan payments.
Your numbers will vary depending on how much you make and how much expenses you have each month. Some people put more emphasis on their liabilities, while others put more weight on their assets.
If your liabilities exceed your assets, that could suggest trouble even if all of your other assets are liquid and readily available for spending. For example, if your mortgage is $200,000 and you owe $100,000 (including principal and interest), that could mean trouble even though you have $300,000 in retirement savings plans and a brokerage account with $50,000 in the bank.
Having more assets than liabilities is a good thing. It means you have money to fall back on should there be an emergency. Plus, having money in the bank can make a huge difference in your financial situation.