Most individuals and families own certain things in full and take loans to pay for a portion of other things such as a home, a car, etc. As the name indicates, your net worth is a measure of what actually belongs to you. This means finding out the true value of everything you have possession of, including cash, minus anything you owe to others. Your net worth indicates the level of your affluence, and helps you determine your financial well being. If you have a significant net worth, you may want to preserve it and also adjust your lifestyle in order to fully enjoy it. On the contrary, if your net worth is limited then you need to manage your budget tightly, as well as save and/or earn more. A negative net worth means you owe more than you own. This is a dangerous situation and simply put, it means you are broke and need to fix your situation ASAP. Here is a simple calculator you can utilize to determine your net worth. You can also print your result and review it every year in order to determine how effectively you are managing your finances.