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
- AssetsThings you own that hold value, such as cash, investments, property, or a business, that add to 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.
- Debt-to-Income Ratio (DTI)The share of your monthly income that goes to debt payments — a key number lenders check.
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Plain-English education — not personalized legal, tax, or investment advice.