A fuller guide to this term is on the way. In the meantime, the related terms below explain the ideas around it.
Related MoneyPedia terms
- LiabilitiesMoney you owe to others, including loans, credit card balances, and mortgages, which subtract from your net worth.
- Net WorthWhat you own minus what you owe — the clearest scorecard of your financial progress.
- Net Worth StatementA snapshot listing everything you own and everything you owe, with the difference showing your financial standing.
- Liquid AssetsThings you own that can be converted to cash fast, like a checking account balance or money-market fund.
- AppreciationAn increase in an asset's value over time, such as a home or stock becoming worth more than you paid.
- Asset AllocationHow you split your money among stocks, bonds, and cash — the biggest driver of risk and growth.
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Plain-English education — not personalized legal, tax, or investment advice.