Your Balance Sheet
A balance sheet puts what you own on one side and what you owe on the other. The difference between them is net worth, which is the figure most other measures are eventually compared against.
Total Assets − Total Liabilities = Net Worth
- Assets. Everything you own with financial value: checking, savings, investments, retirement accounts, real estate.
- Liabilities. Everything you owe: card balances, mortgages, auto loans, student loans.
- Net worth. What remains once every debt is settled.
A negative figure is common early on, when student loans or a fresh mortgage sit against assets that have not accumulated yet. The slope over time carries more information than the level on any given day.
This content is educational and informational only. It is not financial, investment, or tax advice. Consult a qualified professional before making financial decisions.