The value of all of your assets minus the total of all of your liabilities. In other words, it is what you own minus what you owe. For example, if you have $10,000 in cash savings, a home valued at $350,000, and $30,000 in retirement investments, but also have a $10,000 credit card balance and a $250,000 mortgage, your net worth would be $130,000.
Net worth is a better measure of someone's financial stability than income alone. A person's income could be disrupted by job loss or reduction in work hours. A positive net worth might be a sign of good financial health, while a negative net worth might be a sign of poor financial health.